Amazon (AMZN) has launched a new pharmacy service that lets customers order a six-month supply of prescription drugs starting from $6, according to a Reuters report. However, the company has restricted access to the service to customers with prescriptions from their healthcare providers.
Customers can order supplies of medications for common diseases such as diabetes and blood pressure.
Prime members would be eligible for extra savings for drug payments not covered by insurance. Amazon will offer free two-day delivery under its prescription drugs supply program.
Citing the Insider, Reuters reported that Amazon is considering opening physical pharmacies as well in the U.S. (See Amazon stock analysis on TipRanks)
Morgan Stanley analyst Brian Nowak reiterated a Buy rating with a price target of $4,500 on Amazon stock. Nowak’s price target implies 37.86% upside potential.
The analyst believes Amazon could soon launch an expanded same-day shipping service. Same-day delivery, the analyst believes, will raise consumer expectations and better address the on-demand market worth nearly $1.7 trillion.
“These categories make up ~65% of the remaining offline core US consumer expenditure and will drive ~40% of forward US e-commerce growth,” noted Nowak.
Consensus among analysts is a Strong Buy based on 31 Buys. AMZN’s average analyst price target of $4,295.17 implies 31.59% upside potential to current levels.
According to TipRanks’ Hedge Fund Trading Activity tool, confidence in AMZN is currently Very Positive. The cumulative change in holdings across the 56 funds that were active in the last quarter was an increase of 660,500 shares.
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