Analyst Craig Hettenbach from Morgan Stanley maintained a Hold rating on American Well (AMWL – Research Report) and keeping the price target at $10.50.
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Craig Hettenbach’s rating is based on a mix of positive and challenging factors affecting American Well. The company’s future revenue expectations are considerably below market estimates, with a significant portion of this shortfall attributed to a recent divestiture and loss of major clients. Despite these challenges, there are promising developments, such as the increasing momentum in the DHA implementation and a favorable shift towards software offerings.
Amwell’s recent financial performance showed resilience, as it exceeded expectations on both revenue and EBITDA metrics for the most recent quarter. However, guidance for the upcoming quarter and the year 2025 presents a mixed picture, with revenue forecasts lagging behind market expectations. The company’s strategic focus on software is expected to drive substantial growth, yet there remains uncertainty about the stability of its core business. Thus, the Hold rating reflects a cautious stance as the company navigates these complexities.
According to TipRanks, Hettenbach is ranked #1931 out of 9369 analysts.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $12.00 price target.