A recent arrival to the stock exchange, telehealth services specialist American Well (NYSE:AMWL), has been a favorite of investors. It seems as if the stock is becoming a favorite of analysts too. On Monday, prognosticators from several prominent companies initiated coverage on the stock, several with emphatic buy recommendations. Not surprisingly, American Well (a.k.a. Amwell) shot higher in trading, closing the day up by 6.3%.
New members of the Amwell Fan Club include Cowen's Charles Rhyee. He launched his coverage of the stock with a $41-per-share price target -- 18% higher that its latest closing -- and an outperform rating.
Bloomberg quoted Rhyee as saying that "Telehealth is currently one of the biggest themes in healthcare, and ... AMWL should benefit from its focus on providers, who we see being a key driver in the next leg of growth in telehealth."
Another researcher bullish Amwell is Piper Sandler, which on Monday tagged them with an overweight recommendation at $44 per share.
However, since telehealth is one of the hottest segments in the healthcare sector at the moment, Amwell stock is on fire. Its price has risen by over 51% since it hit the stock exchange less than a month ago.
So, some of the new initiations have been significantly less bullish. One is Morgan Stanley analyst Ricky Goldwasser, who believes it is fairly priced at $35, giving it an equal weight recommendation.