American Well: Strong Near-Term Performance but Limited Post-2026 Visibility Keeps Rating at Hold

In a report released yesterday, Charles Rhyee from TD Cowen maintained a Hold rating on American Well, with a price target of $5.00.

Charles Rhyee has given his Hold rating due to a combination of factors, including American Well’s solid quarterly performance contrasted with a weaker longer‑term outlook. The company exceeded expectations on both revenue and EBITDA, demonstrated good subscription retention, and benefited from growing specialty care and virtual pharmacy visits alongside continued cost efficiencies.

At the same time, management’s 2026 guidance calls for roughly a 20% revenue decline, driven not only by divestitures and strategic refocusing but also by reduced Defense Health Agency program scope and churn among health systems and health plans. While Rhyee views the pivot toward the core tech platform and higher‑quality recurring revenue as strategically sound, the lack of clear visibility into renewed growth after 2026 and the prospect of another transition year justify maintaining a neutral, Hold stance.

In another report released on February 4, TipRanks – OpenAI also reiterated a Hold rating on the stock with a $4.50 price target.

Based on the recent corporate insider activity of 35 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.