Analysts Views Mixed on AMN Healthcare Services, Inc. (NYSE:AHS)

Several analysts have recently weighed in on AMN Healthcare Services, Inc. (NYSE:AHS), issuing notes to investors. Randle G. Reece of Avondale Partners, LLC released a note to investors on the stock 9 October with a $36.00 price target.

“AHS shares are 25% below their September all-time high. Directionally, the stock followed a late-3Q downdraft in the broader healthcare sector. But AHS was punished more than most other healthcare related stocks were. We attribute the underperformance to the number of new investors who bought the stock well above $30 in August and September, when some longtime holders were taking profits. Valuation story changed in a short time. ”

Timothy McHugh of William Blair also released a note to investors 2 month ago rating Outperform stance on AMN Healthcare.

“On a two-year basis, the company’s organic growth accelerated almost 300 basis points in the second quarter, and management’s guidance for the third quarter implies an additional 150 basis points of acceleration (although a decent portion of the acceleration in the third quarter is attributable to an expected pickup in EMR-related project revenue). These results reinforce our view that improved utilization trends at hospitals (aging populations, better economy, healthcare reform), strong bill rate increases (driven by a shortage of qualified workers), and market share gains (driven partly by its MSP strategy) will drive strong growth for the company. The company’s profit margin trends also remain strong, due to leverage of fixed costs and above-average growth in alternative workforce solutions (which have strong margins). ”

Timothy also added, “The Company’s adjusted EBITDA margin expanded 190 basis points year-over-year, to 11.2%, in the second quarter, exceeding our projection for just 20 basis points of margin improvement. About 40 basis points of the year-over-year margin improvement is attributable to a favorable adjustment to the company’s professional liability accruals, but the underlying results were still much stronger than we had modeled. Excluding the more favorable professional liability accrual, the company’s incremental margin was 14%, which is relatively similar to 13%-14% in the prior two quarters. Management’s guidance for a 10.0%-10.5% adjusted EBITDA margin in the third quarter (versus our prior projection for a 9.0% margin) reflects expectations for continued strong improvement.”

Another analyst at UBS Equities has a Bullish stance on the stock. A.J. Rice issued a note 2 month ago with a Buy rating on the stock and $40.00 price target.

“Raising PT to $40.00 from $36.00 on Higher Estimates Our PT of $40.00 assumes AHS shares trade at 25x our latest 2017 EPS estimate.”

AMN Healthcare Services, Inc. (NYSE:AHS) is the leader and innovator in healthcare workforce solutions and staffing services to healthcare facilities across the nation. AMN Healthcare’s workforce solutions – including managed services programs, vendor management systems, recruitment process outsourcing and consulting services – enable providers to successfully reduce complexity, increase efficiency and improve patient outcomes within the rapidly evolving healthcare environment. The Company provides unparalleled access to the most comprehensive network of quality healthcare professionals through its innovative recruitment strategies and breadth of career opportunities. Clients include acute-care hospitals, community health centers and clinics, physician practice groups, retail and urgent care centers, home health facilities, and many other healthcare settings.

On Oct. 9, 2015 AMN Healthcare Services, Inc. (NYSE:AHS), +2.32% the leader and innovator in healthcare staffing services and workforce solutions to healthcare facilities across the nation, recognized the top associate vendors that help supply physicians, nurses and allied professionals to healthcare providers through AMN managed services programs (MSPs) across the country. Managed Services Programs enable hospitals, health systems and other types of healthcare facilities to streamline the management of the contingent workforce by providing one point of contact and integration of all workforce processes, ranging from candidate sourcing, selection, credentialing, timekeeping and billing. AMN industry leading MSP services improve financial, operational and clinical performance for our healthcare clients.


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