Amwell rallies on health contract win for U.S. military

AMERICAN WELL

20/10/2023 14:20

(Updates, adds research analyst commentary)
    ** Shares of Amwell  AMWL.N  up ~14% at $1.08 premarket
after telehealth firm announced late Thurs announced it, along
with Leidos  LDOS.N , awarded contract for U.S. military
    ** Under the task order, Leidos Partnership for Defense
Health (LPDH) will deliver Amwell Converge platform to deliver
hybrid care and replace Military Health System Video Connect
solution
    ** It will start at five initial sites followed by phased
enterprise roll-out, co said; if all options exercised task
order has 22-month performance period with total value of up to
$180 mln
    ** TD Cowen, which rates AMWL "market perform", says in note
Dept of Defense award is further validation for Converge
platform
    ** Brokerage adds it is looking for Amwell on its Q3
earnings call to provide more background on the win, along with
opportunities to expand into the government market
    ** AMWL on Thurs fell 7.5% to $0.94, marking record low
close. YTD, stock has shed 67%
    ** LDOS shares, which are flat on very thin trading volume
before the bell, closed on Thurs at $93.41, down 11% YTD

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))