AMN, Cross Country fall as Jefferies cites lower temp staffing demand
Jan. 18, 2023 1:43 PM ETAMN Healthcare Services, Inc. (AMN), CCRNHCA, THC, CYHBy: Dulan Lokuwithana, SA News Editor2 Comments
- Providers of temporary workforce solutions to hospitals, AMN Healthcare Services (NYSE:AMN), and Cross-Country Healthcare (NASDAQ:CCRN) fell on Wednesday as Jefferies cited a decline in demand for temporary staffing.
- Based on data from private healthcare staffers, the analyst Brian Tanquilut noted that both job availability and travel nurse demand dropped from Jan. 10 – Jan. 17 while median bill rates also fell as expected.
- The analyst argues that HCA Healthcare (HCA), Tenet Healthcare (THC), and Community Health Systems (CYH) can benefit from “the notable drop in demand,” which indicates a reduced need for temp labor in healthcare systems.
- Tanquilut reaffirms Buy ratings on all three healthcare providers as well as staffing firms AMN (AMN) and Cross-Country (CCRN), noting that the latter group can sustain earnings power thanks to slower-than-expected bill normalization.
- “Our bullish sentiment towards staffers is based on the belief that demand will settle notably higher than pre-COVID levels resulting in sustained earnings power in out-years,” the analyst added.
- In December, Hedgeye added AMN Healthcare (AMN) as a new short idea expecting pressure on rates, volumes, and margins.