Breaking Down American Well: 4 Analysts Share Their Views

During the last three months, 4 analysts shared their evaluations of American Well AMWL, revealing diverse outlooks from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for American Well, revealing an average target of $9.38, a high estimate of $12.00, and a low estimate of $7.50. A decline of 8.49% from the prior average price target is evident in the current average.

Interpreting Analyst Ratings: A Closer Look

The standing of American Well among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to American Well. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of American Well compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for American Well's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of American Well's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

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About American Well

American Well Corp is a telehealth company enabling digital delivery of care for its customers. Its platform, Amwell, digital care delivery solution that equips health systems, health plans, government, and innovator clients with the tools to enable new models of care for their patients and members enabling care delivery across the full healthcare continuum - from primary and urgent care in the home to high acuity specialty consults, such as telestroke and telepsychiatry, in the hospital. It provides both on-demand and scheduled consultations. Its Health Plan Programs include Virtual Primary Care, Musculoskeletal Care, Dermatology Care, and Chronic Care among others.

Understanding the Numbers: American Well's Finances

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Positive Revenue Trend: Examining American Well's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 0.47% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: American Well's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -60.07%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): American Well's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -13.3% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -9.28%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: American Well's debt-to-equity ratio is below the industry average. With a ratio of 0.03, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Core of Analyst Ratings: What Every Investor Should Know

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.