Analyst Note| Julie Utterback, CFA |
In a surprise twist to the election season, the Democrats are very close to winning the remaining two U.S. Senate seats in the Georgia runoffs. If the elections go to the Democrats, we suspect Joe Biden's administration will seek to implement further healthcare reforms. However, with such a slim majority in the Senate, compromises on ideals espoused by the Biden campaign may be required to get healthcare legislation passed with support from moderate Democrats. With significant compromises possible in the next several months as the legislation is crafted, we will keep steady on our moat and valuation views until more clarity emerges on the potential changes to the healthcare industry.