Amwell upgraded to Buy at BofA with anchor clients signed

As previously reported, BofA analyst Allen Lutz upgraded Amwell (AMWL) to Buy from Neutral with an unchanged price target of $4.20. Amwell has signed two "anchor" clients in CVS (CVS) and Elevance (ELV), which should help stabilize revenue and create upside optionality, Lutz tells investors. In addition, Amwell has nearly $600M of cash on its balance sheet and doesn’t need capital, Lutz noted. He thinks the combination of stable revenue and continued margin improvement as Amwell progresses through 2023 can support a higher valuation, Lutz stated.