TD Cowen analyst Charles Rhyee maintained a Hold rating on American Well (AMWL – Research Report) today and set a price target of $2.00.
Geoff Meacham has given his Hold rating due to a combination of factors including American Well’s (AMWL) anticipated revenue and the need for consistent growth indications before a more positive outlook can be assumed. Specifically, the forecasted fourth-quarter revenue of $70 million and an adjusted EBITDA of negative $37 million set a cautious tone for the near term. Additionally, while there is potential for meaningful revenue acceleration in 2025 driven by the Defense Health Agency (DHA) contract, the company must demonstrate progress in rebuilding its bookings pipeline and managing expenses to support its long-term breakeven targets. These elements contribute to the decision to maintain a Hold rating at this time.
The focus of the analysis also includes expectations for AMWL’s ability to translate its ROI-based selling approach into bookings growth, which is critical for driving investor interest. The company’s success with strategic clients and Converge migrations are seen as positive signs, yet further evidence of new client wins and benefits from a stronger macroeconomic environment are required. Moreover, opportunities in the government and public sector, such as the potential VA contract following the DHA win, and updates on Converge migrations and its impact on financials, are key areas of interest that could influence future ratings. However, until these factors show consistent positive developments, the Hold rating remains justified.
According to TipRanks, Rhyee is a 4-star analyst with an average return of 4.2% and a 51.41% success rate. Rhyee covers the Healthcare sector, focusing on stocks such as R1 RCM, CVS Health, and Evolent Health.
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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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