AMWL - Morgan Stanley cuts American Well to hold cites slower-than-expected growth
2023-08-03 16:05:35 ET
Morgan Stanley cut its rating on American Well ( NYSE: AMWL ) to hold, citing the company's weaker-than-expected growth for the first half of the year.
The investment bank said that while it sees a valuation creation opportunity with the migration of customers to Amwell's Converge platform and believes Amwell is "well positioned" in the telehealth sector, it now views Amwell as more of a 2024/2025 story.
Morgan Stanley noted that bookings were below expectations for the first half of the year, resulting in a further pushing out of revenue into 2024. It added that while management is now targeting break-even at a revenue run rate of $400M, its topline would have to grow by nearly 55% based on 2023 guidance to reach that level.
The investment bank also slashed its priced target for the stock to $2.50 from $5.
On average, Wall Street and Seeking Alpha analysts have a hold rating on American Well. The stock's Quant rating is currently a strong sell.
More on American Well:
American Well Corporation AMWL Q2 2023 Earnings Call Transcript
American Well down 6% on earnings, 2023 revenue outlook cut
American Well GAAP EPS of -$0.33 misses by $0.10, revenue of $62.45M misses by $3.42M
American Well Corp.: Reiterate Hold As I Await Converge To Be Fully Implemented
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Morgan Stanley cuts American Well to hold, cites slower-than-expected growth