Cautious Hold Rating for Cross Country Healthcare Amid Revenue Decline and Market Challenges

William Blair analyst Trevor Romeo has maintained their neutral stance on CCRN stock, giving a Hold rating today.

Trevor Romeo has given his Hold rating due to a combination of factors impacting Cross Country Healthcare’s performance. The company’s recent earnings report showed a significant decline in revenue, particularly in the nurse and allied staffing segment, which saw a 27% year-over-year decrease. This decline was a major contributor to the overall 23% drop in revenue compared to the previous year.
Despite some growth in nontravel sectors like homecare and education, the core travel nurse and allied services experienced notable declines. Additionally, while the gross margin remained stable, the adjusted EBITDA margin saw a slight decrease. The competitive landscape in the travel nurse and allied industry remains intense, although there are signs of stabilization in bill/pay spreads. These mixed results and market conditions have led to a cautious outlook, justifying the Hold rating.

In another report released today, Truist Financial also maintained a Hold rating on the stock with a $18.61 price target.