Amwell drops as Stifel calls for a better entry point

 

• American Well Corporation (NYSE:AMWL) drops -2.3% as Stifel initiates coverage with a ‘Hold’ recommendation, suggesting ‘there may be a more opportunistic time to initiate or add to current positions.’
• Noting Amwell as a significant beneficiary of the pandemic, the analyst David Grossman writes the company ‘has catalyzed secular growth tailwinds independent of the economic cycle,’ which he identifies as a combination, supporting the current valuation multiple of ~23x in terms of 2021 revenue.
• Despite being comfortable with ‘company specific fundamental outlook near-intermediate term,’ the analyst doubts the impact of market sentiment on the multiple setting a price target of $29 for the stock.
• https://seekingalpha.com/news/3645834-amwell-drops-stifel-calls-for-better-entry-point