BTIG analyst David Larsen has maintained their neutral stance on AMWL stock, giving a Hold rating on November 21.
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David Larsen’s rating is based on a combination of factors that reflect both optimism and caution regarding American Well’s future prospects. The company has shown promising signs of a turnaround, with improvements in gross margins and a strategic shift towards managed care plans. However, the success of these efforts largely hinges on securing significant new contracts, such as those with the Department of Veterans Affairs or other large plans, which would be crucial for achieving EBITDA break-even by 2026.
While the company’s restructuring efforts and focus on higher-margin opportunities through its Converge platform are commendable, the need for large-scale wins remains critical. The reduction in operating expenses and the pivot away from hospital IDNs to a more scalable business model are positive developments, but the overall financial health and growth potential of American Well are still contingent on capturing substantial new business. Thus, the Hold rating reflects a balanced view, acknowledging the potential for growth while recognizing the risks and uncertainties that remain.
In another report released on November 21, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $3.50 price target.
Based on the recent corporate insider activity of 39 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.