Analyst Jeffrey Silber of BMO Capital maintained a Buy rating on AMN Healthcare Services (AMN – Research Report), with a price target of $85.00.
Jeffrey Silber has given his Buy rating due to a combination of factors centered around AMN Healthcare Services’ strategic acquisition and its expected positive financial impact. The acquisition of MSDR is anticipated to strengthen AMN’s locum tenens segment, which is currently outperforming its other business lines. This segment is notably resilient as it did not experience the same pandemic-induced surge as nurse staffing, suggesting a more stable growth trajectory. Additionally, the deal is seen as accretive within the first year, which is a positive sign for future earnings.
Silber’s optimism is also supported by the financial synergies of the acquisition. MSDR, being a significant player in locum tenens, contributes to AMN’s solidifying position in the market. With the acquisition priced attractively at approximately 1.9 times MSDR’s annualized revenues for the year, compared to AMN’s lower trading multiple, the transaction is financially compelling. The expectation that AMN will use future free cash flow to service the acquisition debt further bolsters confidence in the company’s fiscal management and outlook. Collectively, these elements contribute to Silber’s Buy rating as they indicate a promising direction for AMN’s growth and profitability.
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Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AMN in relation to earlier this year.
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AMN Healthcare Services (AMN) Company Description:
AMN Healthcare Services, Inc. provides healthcare workforce solutions and staffing services to healthcare facilities across the nation. Its workforce solutions include managed services programs and recruitment process outsourcing. The company operates through the following segments: Nurse and Allied Solutions, Locum Tenens Solutions and Other Workforce Solutions. The Nurse and Allied Solutions segment provides hospital and other healthcare facilities with a range of clinical workforce solutions. The Locum Tenens Solutions segment offers managed service programs, vendor management systems solution and traditional temporary staffing. The Other Workforce Solutions other workforce solutions segment consists of the following Company businesses physician permanent placement services, healthcare interim leadership staffing and executive search services, vendor management systems, recruitment process outsourcing, education, mid-revenue cycle management, and workforce optimization services. AMN Healthcare Services was founded on November 10, 1997 and is headquartered in San Diego, CA.
Read More on AMN:
- AMN Healthcare initiated with a Neutral at UBS
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- AMN Healthcare price target lowered to $88 from $95 at Truist
- AMN Healthcare downgraded to Hold at Benchmark with 2024 expectations reset
- AMN Healthcare downgraded to Hold from Buy at Benchmark
