Cross Country Healthcare: Hold Rating Amid Acquisition Termination and Uncertain Financial Trajectory
Jefferies analyst Jack Slevin maintained a Hold rating on Cross Country Healthcare with a price target of $8.65. The termination of the proposed acquisition by Aya led to a $20 million termination fee, which CCRN plans to use for share buybacks. Despite a strong net cash position, the company's financial trajectory remains uncertain, lacking fourth-quarter guidance. Slevin's cautious stance reflects these uncertainties, awaiting signs of fundamental improvement.
Jefferies analyst Jack Slevin maintained a Hold rating on Cross Country Healthcare today and set a price target of $8.65.
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Jack Slevin has given his Hold rating due to a combination of factors surrounding Cross Country Healthcare’s recent developments. The termination of the proposed acquisition by Aya has resulted in CCRN receiving a $20 million termination fee, which they plan to use for immediate share buybacks. This strategic move is supported by their strong net cash position, which stands at approximately $115 million after accounting for the breakup fee.
Despite the potential for a modest recovery in fundamentals now that the acquisition distraction is removed, the company’s current financial trajectory remains uncertain. The lack of fourth-quarter guidance following the deal termination adds to the near-term risk, prompting a cautious stance. Consequently, Slevin adjusted the price target to $8.65, reflecting a slightly lower valuation due to these uncertainties, while maintaining a Hold rating as they await more concrete signs of fundamental improvement.
