American Well AMWL shares jumped on Monday after coverage of the stock was initiated by a number of analysts four weeks following the Boston telehealth company’s debut on the New York Stock Exchange.
Amwell shares were trading at $34.29, up 5%, at last check. Here’s what Wall Street is saying:
Morgan Stanley analyst Ricky Goldwasser initiated coverage of the stock with an equal weight rating and $35 price target, saying the company’s telehealth platform is poised to gain share within a “large and expanding” market.
UBS’s Kevin Caliendo initiated coverage of Amwell with a neutral rating and $29 price target.
Caliendo says the neutral rating reflects the stock’s 81% climb since its IPO in mid-September. But the company has the potential to accelerate its growth above the estimated 27% revenue growth excluding acquisitions that Caliendo anticipates.
Goldman Sachs initiated coverage of Amwell with a neutral rating and $31 price target.
Analyst Robert Jones says American Well “is a leading telehealth vendor with a diversified customer base and a clear runway for recurring 20%-plus revenue growth, gross-margin expansion and representing one of the most top-of-mind themes in health care,” according to Bloomberg.
Cowen’s Charles Rhyee initiated coverage of Amwell with an outperform rating and $41 price target, which is a 30-times multiple to his 2022 sales estimate of $333 million.
“Telehealth is currently one of the biggest themes in health care, and … AMWL should benefit from its focus on providers, who we see being a key driver in the next leg of growth in telehealth,” Rhyee said, according to Bloomberg.