UBS Raises Price Target on Cross Country Healthcare (CCRN) After Traveling with Management

UBS reiterated a Buy rating on Cross Country Healthcare (NASDAQ: CCRN), and raised the price target to $17.00 (from $15.00), after traveling with senior management. Management is highly confident that the company will achieve its profitability goals of a 5% adjusted EBITDA margin by the end of 2015 and an 8% EBITDA margin by 2017.

Analyst A.J. Rice commented, "We had the opportunity to travel with the senior management from Cross Country Healthcare including CEO, Bill Grubbs, and CFO Bill Burns for meetings with investors in Toronto and NYC. Management is highly confident that the company will achieve its profitability goals of a 5% adj EBITDA margin by the end of 2015 and an 8% EBITDA margin by 2017. While analyst estimates assume CCRN reaches the 5% target this year, there could be significant upside, depending upon revenue growth, if CCRN achieves the 8% target by 2017 (our est and cons imply a 6.2-6.4% adj EBITDA margin in 2017). CCRN is benefiting from a favourable supply/demand for temporary medical staffing and from a broad array of company specific cost reduction opportunities."

For an analyst ratings summary and ratings history on Cross Country Healthcare click here. For more ratings news on Cross Country Healthcare click here.

Shares of Cross Country Healthcare closed at $14.07 yesterday.

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