Hold Rating on Cross Country Healthcare Amid Acquisition Uncertainty and Financial Challenges

In a report released today, Kevin Steinke from Barrington maintained a Hold rating on Cross Country Healthcare (CCRN – Research Report), with a price target of $18.61.

Kevin Steinke has given his Hold rating due to a combination of factors surrounding Cross Country Healthcare’s current situation. The company is in the process of being acquired by Aya Healthcare, which has agreed to purchase Cross Country for $18.61 per share, a significant premium over its current trading price. However, the merger is under scrutiny by the U.S. Federal Trade Commission, which has requested additional information, creating uncertainty about the deal’s completion.
Moreover, Cross Country’s recent financial performance has shown a decline, with Q1/25 revenue falling short of estimates and a year-over-year decrease in adjusted EBITDA. Despite these challenges, the company’s gross margin has stabilized, and there is a potential upside if the merger proceeds as planned. Given these mixed signals, Steinke maintains a Hold rating, reflecting the balance between the potential benefits of the acquisition and the risks associated with regulatory approval and current market conditions.