- Wolfe Research analyst Scott Mushkin weighs in on the possibility that Walmart (WMT -4.5%) will explore an acquisition or deep collaboration with Humana (NYSE:HUM).
- Wolfe on the Walmart upside: "Our analysis suggests the best course of action for Walmart may be to pursue a buyout of Humana as the transaction looks to be both strategically sound and accretive. Our research indicates that Walmart is highly valued by its core customer, a customer that over-indexes to chronic health conditions and has more limited access to quality healthcare. By extending the company’s reach more broadly into healthcare services, we believe Walmart can do good by the communities it serves and simultaneously do good by shareholders. While the transaction appears accretive given Walmart’s strong financial condition, we see the opportunity over time for significant revenue synergies."
- Previously: Humana up 13.5% on report Walmart eyes possible acquisition (March 29)
- Previously: Sell-siders weigh in on potential Walmart - Humana tie-up (April 2)
- Now read: A Deep Drill Down To Walmart's Problem In E-Commerce
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