This article was originally published on TipRanks.com
Healthcare company CVS Health Corporation (CVS) recently announced that it has entered into a strategic alliance with software major Microsoft to develop innovative solutions. Following the news, shares of the company rose 1.4% to close at $90 in Thursday’s extended trading session.
Implications of the Deal
The collaboration with Microsoft is aimed at making the whole process of accessing healthcare solutions efficient for all stakeholders in the value chain.
While the collaboration is expected to enable a data-driven and personalized experience for consumers, Microsoft Azure adoption is likely to make the work of technicians easier. Similarly, the use of Microsoft Teams and Office products will help in addressing customer issues more effectively.
The Chief Information Officer of CVS Health, Roshan Navagamuwa, said, “We are rapidly transforming into a consumer-centric, integrated health solutions company, taking a digital-first, technology forward approach to all that we do. Our collaboration with Microsoft will accelerate this work and empower our employees to provide quality care that is more personal and affordable.”
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Recently, Seaport Global analyst Joseph France initiated coverage on the stock with a Buy rating. The analyst’s price target of $110 implies upside potential of 22.2% from current levels.
According to the analyst, the company’s repositioning of its retail business and its moves to take advantage of the primary care market bode well for the company in the long term.
Further, about the company’s managed care business, the analyst stated that it is “getting stronger, growing faster and driving the development of a provider platform that consumers will like.”
Consensus among analysts is a Strong Buy based on 14 Buys and 2 Holds. The average CVS Health price target of $108.69 implies upside potential of 20.8% from current levels. Shares have gained 24.1% over the past year.
TipRanks Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into CVS Health’s performance this quarter.
According to the tool, the CVS Health website recorded a 4.37% monthly rise in global visits in October, compared to the same period last year. Further, the website traffic has grown 84.55% year-to-date.
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