Morgan Stanley analyst Craig Hettenbach noted that Amwell (AMWL) shares closed down 8% yesterday and fell as much as 10% intraday in apparent reaction to headlines that the company is in talks to acquire Talkspace (TALK). Should such a transaction be confirmed, he would seek management clarification on the strategic rationale for such a deal as there does not appear to be a strong strategic fit, said Hettenbach. However, in the absence of a transaction, he views the move in the stock as "an overreaction," added Hettenbach, who has an Overweight rating and $7 price target on Amwell shares.
Published first on TheFly
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