Charles Rhyee, an analyst from TD Cowen, maintained the Hold rating on American Well (AMWL – Research Report). The associated price target remains the same with $12.00.
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Charles Rhyee has given his Hold rating due to a combination of factors surrounding American Well’s recent financial performance and future outlook. The company’s fourth-quarter revenue of $71 million surpassed expectations, and the EBITDA loss was smaller than anticipated. However, the revenue guidance for 2025, although indicating potential growth, fell short of consensus expectations due to adjustments like the divestment of APC. This suggests a cautious approach as the company continues to navigate customer churn.
Despite these challenges, American Well has shown resilience, with signs of improved client quality and expected reduced churn in the future. The ongoing enterprise deployment with the Defense Health Agency and potential involvement in a contract extension with Leidos provide promising opportunities. Moreover, the company’s efforts to move towards breakeven and improve cash flow, particularly through higher-margin subscription revenues and cost reductions, indicate a positive long-term trajectory. Overall, these mixed signals warrant a Hold rating as the company stabilizes and positions itself for future growth.
Based on the recent corporate insider activity of 67 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.