Joanna Gajuk, an analyst from Bank of America Securities, reiterated the Sell rating on AMN Healthcare Services (AMN – Research Report). The associated price target is $26.00.
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Joanna Gajuk’s rating is based on a combination of factors including AMN Healthcare Services’ recent earnings performance and future guidance. The company’s Q4 results showed an EBITDA beat, partly due to higher revenue from strike benefits. However, the guidance for the upcoming quarter’s core EBITDA, excluding an estimated strike benefit, falls significantly below consensus expectations by 15%. This lower visibility into the company’s financial performance is a concern for investors.
Moreover, the outlook for 2025/26 has been revised downward, reflecting a lower run-rate and leading to a reduction in the price objective to $26.00. Despite some signs of stabilization in travel nurse orders and expectations of demand growth due to increasing hospital admissions, certain hospital systems are aiming to reduce their reliance on contract labor. These factors, combined with a projected decline in nurse and allied volumes in the short term, contribute to the cautious outlook and the decision to maintain an underperform rating.