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Friday, shares of AMN Healthcare Services Inc . (NYSE:AMN) saw a new price target issued by JMP Securities, set at $34, a decrease from the previous $47. The firm maintained its Market Outperform rating on the healthcare staffing company's stock, which has experienced a significant -55% decline over the past six months according to InvestingPro data. The adjustment follows a revision of the company's expected earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year 2025, now forecasted at $235 million, down from the initial $250 million estimate.
The reduction in the target price is attributed to a more cautious outlook on operating margins. JMP Securities has also introduced projections for AMN Healthcare's revenue and EBITDA for the year 2026, anticipating figures of $2.66 billion, marking a 2.5% year-over-year increase, and $255 million, an 8.5% year-over-year rise, respectively. This comes as InvestingPro data shows nine analysts have revised their earnings expectations downward, with current analyst targets ranging from $27 to $47.
The new price target is pegged at 9.5 times the revised EBITDA estimate for 2025, a shift from the 11 times multiple used previously. This change reflects a more conservative stance due to persistent near-term challenges faced by the healthcare staffing sector.
AMN Healthcare's stock recently traded at 9.1 times the firm's next twelve months (NTM) EBITDA estimate. The updated figures and expectations set forth by JMP Securities provide investors with the latest insights into the company's financial outlook and the industry's operating environment. According to InvestingPro's Fair Value analysis, AMN Healthcare appears undervalued at current levels. Subscribers can access 8 additional ProTips and a comprehensive Pro Research Report for deeper insights into AMN's financial health and growth prospects.
In other recent news, AMN Healthcare Services Inc., a leading healthcare staffing company, reported mixed financial results for its third quarter. The company's Q3 revenue was $688 million, surpassing guidance but down 19% year-over-year. Adjusted EBITDA fell 45% from the previous year to $74 million. Despite these challenges, some segments such as Physician Leadership Solutions and Locum Tenens showed growth, increasing 13% and 26% year-over-year, respectively.
On the other hand, BMO Capital Markets adjusted its outlook on AMN Healthcare by reducing its price target to $46.00, despite endorsing the stock with an Outperform rating. This decision followed AMN Healthcare's recent financial report, which revealed a quarter that slightly outperformed expectations, though the margin guidance did not meet expectations due to weaker performance.
These are recent developments for AMN Healthcare. Despite the near-term challenges, the company has highlighted several positive developments that could bode well for the future, including a favorable managed service provider win/loss ratio, stable sequential trends, and the introduction of Workwise, a new technology platform. BMO Capital, while reducing its estimates for AMN Healthcare, maintains confidence in the company's potential to exceed market expectations in the long run.
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