Bank of America Securities analyst Allen Lutz maintained a Buy rating on American Well (AMWL – Research Report) yesterday and set a price target of $2.30.
Allen Lutz’s rating for American Well’s stock (AMWL) as a Buy is based on the strategic positioning of the company’s Converge platform, which serves as a conduit between payors and health systems. Converge appears to adeptly meet the evolving needs of both parties, particularly as the healthcare landscape shifts towards risk-bearing models that require greater control over the patient journey. The platform’s capabilities extend beyond virtual care to include patient engagement, scheduling, and data interoperability, all presented in a modular format that can be tailored to the specific needs of its customers while maintaining the advantages of a unified system.
Additionally, the potential use cases for Converge among payors are particularly noteworthy. The platform could enable payors to compile various specialized digital health services from different providers into a comprehensive digital health plan. This could be especially appealing to smaller health plans that must compete with larger, vertically integrated ones. The ability of Converge to offer such solutions reflects its potential to be a significant asset in the digital health space, thereby justifying the Buy rating as it may drive American Well’s growth and market competitiveness.
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Based on the recent corporate insider activity of 79 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.
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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.
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