Barrington analyst Kevin Steinke maintained a Hold rating on Cross Country Healthcare (CCRN – Research Report) today and set a price target of $18.61.
Kevin Steinke has given his Hold rating due to a combination of factors influencing Cross Country Healthcare’s current and future performance. The company’s recent Q4/24 results showed solid revenue figures, reaching the high end of their guidance range, but profitability fell short of expectations with a significant year-over-year decline in adjusted EBITDA. This decline was primarily due to softer demand conditions in the healthcare travel staffing industry, which is Cross Country’s largest business segment, and a more competitive environment affecting gross margins.
Additionally, the ongoing merger with Aya Healthcare, expected to close in the second half of 2025, adds another layer of complexity to the company’s outlook. While the acquisition price offers a substantial premium over the current stock price, the transaction is still subject to regulatory approval from the FTC. Given these uncertainties and the lack of immediate growth catalysts, Steinke maintains a Hold rating, aligning the price target with the agreed-upon transaction price of $18.61 per share.