Analyst Joanna Gajuk of Bank of America Securities reiterated a Sell rating on AMN Healthcare Services (AMN – Research Report), reducing the price target to $24.00.
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Joanna Gajuk’s rating is based on several factors that suggest caution regarding AMN Healthcare Services’ stock. The company is experiencing a normalization phase, with expectations to return to over 10% EBITDA margins post-recovery. However, there is low visibility into the timing of this recovery, and a slower economy could further pressure the demand for temporary staffing services.
Additionally, while AMN is focusing on gaining market share and stabilizing gross margins, challenges remain. The international nursing segment has been significantly impacted by a visa backlog, leading to a notable revenue decline. Although management is optimistic about a recovery, the timing is uncertain. Furthermore, AMN has reduced its exposure to the volatile travel nursing segment, but the overall demand for contract labor could be affected by economic conditions, such as changes in unemployment rates.
AMN’s price has also changed slightly for the past six months – from $23.700 to $22.380, which is a -5.57% drop .