In a report released yesterday, Charles Rhyee from TD Cowen maintained a Hold rating on American Well, with a price target of $7.00.
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Charles Rhyee has given his Hold rating due to a combination of factors surrounding American Well’s financial outlook and strategic initiatives. Although the company reported strong numbers for the third quarter, with revenues and EBITDA surpassing expectations, there are concerns about future revenue trends. The management’s decision to lower the revenue guidance for 2025 suggests potential revenue declines, particularly in the fourth quarter, which tempers the positive sentiment from the EBITDA improvements.
Despite these challenges, American Well is pursuing several strategic initiatives aimed at enhancing client return on investment through AI and technology advancements. These initiatives include integrating AI for better patient management and simplifying clinical program collaborations. Additionally, the company is focusing on cost reduction strategies and has divested some non-core assets to streamline operations. While these efforts could lead to stable growth in the future, the current uncertainties and revenue guidance adjustments justify a Hold rating.
In another report released on October 23, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $5.50 price target.
Based on the recent corporate insider activity of 41 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.