Analyst Charles Rhyee of TD Cowen maintained a Hold rating on American Well (AMWL – Research Report), with a price target of $2.00.
Charles Rhyee has given his Hold rating due to a combination of factors. American Well’s reported revenue of $61.9M was lower than the consensus of $63.2M, however, the adjusted EBITDA loss of ($38.5M) was in line with the consensus of ($38.4M). The ongoing progress of the Converge migration is seen as a positive, with AMWL reporting that 50% of visits are now happening on its new platform. The company has also provided more details about its Defense Health Agency (DHA) contract award which, at its full run rate by the end of 2024, will become one of AMWL’s largest customers and should significantly boost revenue.
Further, Rhyee highlights the potential for this DHA contract to generate more opportunities for AMWL, such as partnering with other government programs. The company’s management has reiterated its revenue guidance for 2023 of $257M to $263M, but now expects an adjusted EBITDA in the range of ($162M) to ($167M), an increase from ($160M) to ($165M), reflecting $2M in incremental R&D expenses related to the launch of its DHA contract. Finally, Rhyee has adjusted his 2023/2024 revenue estimate to $258M/$273M (from $261M/$296M) and adjusted EBITDA loss to ($164M)/($91M), from ($163M)/($98M). He has also revised his price target to $2 (from $2.50), based on a revised DCF analysis.
See Insiders’ Hot Stocks on TipRanks >>
Based on the recent corporate insider activity of 93 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AMWL in relation to earlier this year.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
American Well (AMWL) Company Description:
American Well Corp is a telehealth company enabling digital delivery of care for its customers. Its platform, Amwell, enables care delivery across the full healthcare continuum – from primary and urgent care in the home to high acuity specialty consults, such as telestroke and telepsychiatry, in the hospital. It provides both on-demand and scheduled consultations.
Read More on AMWL:
- Amwell, Leidos selected by U.S. Defense Health Agency for ‘Digital First’ effort
- Amwell, Nestle Health Science team on digital solutions for patients’ health
- Amwell and HealthGorilla announce new lab capability with Converge platform
- Amwell, Health Gorilla announce expanded digital diagnostic lab ordering
