The consensus price target for AMN Healthcare Services, Inc. (NYSE: AMN) has significantly declined, but Jefferies maintains a positive outlook with a much higher price target.
Early indicators suggest a potential revenue beat for Q1 2025, supported by less-than-expected decline in contract labor spending by HCA Healthcare.
Innovative solutions like WorkWise and ShiftWise Flex are expected to drive significant revenue growth, leveraging changes in U.S. demographics and healthcare coverage.
AMN Healthcare Services, Inc. (NYSE: AMN) is a leading provider of healthcare workforce solutions and staffing services in the U.S. The company operates through three main segments: Nurse and Allied Solutions, Physician and Leadership Solutions, and Technology and Workforce Solutions. These segments offer services like travel nurse staffing, locum tenens staffing, telehealth, and workforce optimization.
The consensus price target for AMN’s stock has seen a significant decline over the past year, dropping from $49.8 to $25. This change reflects a shift in analysts’ expectations, possibly due to market conditions or company performance. However, Jefferies has set a much higher price target of $175, indicating a positive outlook for AMN’s future.
Despite the drop in the consensus price target, early indicators suggest AMN Healthcare may report a revenue beat for Q1 2025. This potential revenue growth is supported by HCA Healthcare’s contract labor spending, which decreased by only 10.5% compared to the anticipated 18% decline. This suggests a possible bottom in the healthcare staffing market.
AMN Healthcare’s innovative solutions, such as WorkWise and ShiftWise Flex, are expected to drive significant revenue growth. These solutions enhance operational efficiency and are well-positioned to benefit from changes in U.S. age demographics and an increase in insured individuals. This positions AMN for strong financial performance and supports the higher price target set by Jefferies.
In Q4 2024, AMN Healthcare reported significant sequential revenue growth for the first time in two years, indicating a potential end to its cyclical decline. While acquisitions are paused due to high debt levels, the company’s long-term growth drivers, such as platformization and an expanded technology segment, remain strong. This supports the positive outlook and price target set by Jefferies.
