American Well (AMWL – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Stan Berenshteyn from Wells Fargo maintained a Buy rating on the stock and has a $15.00 price target.
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Stan Berenshteyn has given his Buy rating due to a combination of factors including the strong revenue performance in the fourth quarter of 2024, which exceeded expectations. The company’s adjusted EBITDA loss showed significant improvement, and the subscription revenue growth was impressive with a 35% year-over-year increase. Although there were some declines in health system clients and health plans, the average revenue per visit improved, suggesting a favorable shift in the revenue mix.
Looking forward, American Well has set its revenue guidance for 2025, acknowledging the impact of divestitures, yet still projecting substantial subscription growth. The company anticipates significant cost savings and aims for cash flow positivity by 2026. These projections, alongside the management’s confidence in stabilizing revenues in the latter half of 2025, present a compelling case for investment, justifying the Buy rating.
AMWL’s price has also changed dramatically for the past six months – from $8.440 to $12.350, which is a 46.33% increase.