American Well: Another step in the right direction

Research evidence excerpt

M

Idea

August 5, 2026 04:01 AM GMT

Morgan Stanley & Co. LLC

American Well | North America

Craig Hettenbach

Equity Analyst

Another step in the right

direction

Jialin Jin

Research Associate

Katherine A Bennorth

Research Associate

What’s Changed

American Well (AMWL.N)

From

To

Price Target

$6.50

$13.00

Erin Wright

Equity Analyst

Linda Bolduc

Equity Analyst

AlphaSignals Earnings Reaction

Unchanged

Modest upside

Modest revision higher

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Michelle Foley

Research Associate

Derek Gross

Research Associate

Q2 came in slightly ahead. Revenue estimates have been

stabilizing and management is making progress in driving the

business to breakeven. Expansion opportunities in government

programs provide optionality, although the timing is uncertain.

American Well (AMWL.N, AMWL UN)

Healthcare Technology | United States of America

Revenue of $52mn declined 27% y/y in Q2 but came in $2mn ahead of the Street

Stock Rating

Industry View

Price target

Shr price, close (Aug 4, 2026)

Mkt cap, curr (mm)

52-Week Range

( Exhibit 1 ). Adjusted EBITDA loss of $1.2mn was also $2mn ahead. On the back of

Fiscal Year Ending

12/25 12/26e 12/27e 12/28e

the Q2 beat, Amwell increased 2026 guidance modestly, with revenue and EBITDA

EPS ($)**

Prior EPS ($)**

P/E

EPS ($)§

Div yld (%)

(5.90)

NM

(6.17)

The company posted a modest beat in Q2 and tweaked up 2026 guidance.

moving up by $2.5mn and $5.5mn at the mid-point ( Exhibit 2 ). Our estimate come

up slightly ( Exhibit 3 ). Management is optimistic about the opportunity to expand

services with the DHA and to potentially penetrate other agencies such as the VA

and Coast Guard. Following y/y revenue declines since 2023, the company would

like to get back to double-digit growth and traction on these programs is a key

swing factor.

We’re increasing our PT in AMWL to $13 from $6.50. Our former PT had applied a

50% discount to estimated 2027 net cash, due to Amwell’s shrinking revenue base

(2026E sales of $202.5mn, down from $254mn in 2024) and cash burn. With

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