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SunTrust Downgrades Medical Staffing Network Holdings (MRN) to Neural

August 7, 2008 2:56 PM EDT
MRN Hot Sheet
Rating Summary:
    0 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
SunTrust Robinson Humphrey downgrades Medical Staffing Network Holdings, Inc. (NYSE: MRN) from Buy to Neural.

The firm cited:
1. impairment charge to goodwill resulting from cutting the estimated industry growth rate in half may cause investors to shy away from the stock.
2. the company's travel nurse volumes may be impacted in 2H08 and 2009 by larger players focusing more on volume growth versus gross margin expansion.
3. a relatively high leverage ratio of over 4x 2009E EBITDA
4. thinks rising unemployment rate is causing some nurses to gravitate to the security of full-time employment instead of taking travel assignments.

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