William Blair analyst Trevor Romeo has maintained their neutral stance on CCRN stock, giving a Hold rating on August 2.
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Trevor Romeo’s rating is based on several factors that contribute to a cautious outlook for Cross Country Healthcare. The company’s recent financial performance showed a noticeable decline in revenue, particularly in the nurse and allied staffing segment, which dropped significantly both year-over-year and sequentially. Despite some strength in the homecare segment, the overall softness in core travel nurse and allied trends has impacted the company’s consolidated results.
Moreover, while there was a slight improvement in gross margin, the adjusted EBITDA margin experienced a decline, indicating challenges in maintaining profitability. The pending acquisition by Aya Healthcare adds another layer of uncertainty, as it limits the availability of forward guidance and complicates the comparison of results with market expectations. Given these factors, Trevor Romeo has opted for a Hold rating, reflecting a wait-and-see approach amid the cloudy outlook and potential policy uncertainties affecting the industry.
Romeo covers the Industrials sector, focusing on stocks such as Casella Waste, Korn Ferry, and Kforce. According to TipRanks, Romeo has an average return of -2.2% and a 50.00% success rate on recommended stocks.
In another report released on August 2, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $13.50 price target.