Update shared on 08 Nov 2025
Fair value Increased 5.28%AMN Healthcare Services' analyst price target has been raised from approximately $20.29 to $21.36, as analysts cite stabilizing staffing trends, improving travel nurse demand, and an expectation for margin recovery despite ongoing industry headwinds.
Analyst Commentary
Bullish Takeaways- Bullish analysts highlight robust improvements in travel nurse demand, which has rebounded significantly from mid-year lows and signals a potential sector recovery.
- Stable Allied segment demand and a positive outlook for international nurse business are seen as potential drivers for margin stabilization and further upside.
- Recent upward price target revisions reflect confidence in AMN Healthcare’s ability to support major customers during labor disruptions and navigate uncertain market conditions.
- Despite recent margin pressures, management’s focus on operational execution is expected to help the business capitalize on renewed industry growth.
- Bearish analysts are concerned about an increasingly negative policy and reimbursement environment, which may pressure hospital and staffing fundamentals in the coming quarters.
- There is caution over recent government policies and macroeconomic volatility, which have softened hospital staffing volumes and added uncertainty to demand trends.
- Near-term trends may remain choppy, with winter orders not expected to meaningfully improve performance in the Nurse and Allied segments.
- Preference for post-acute over hospital exposure suggests underlying skepticism about hospitals' resilience to industry-wide reimbursement cuts.
What's in the News
- AMN Healthcare Services provided consolidated earnings guidance for Q4 2025, with expected revenue between USD 715 million and USD 730 million. (Company Guidance)
- Revenue for the fourth quarter is projected to be 1% to 3% lower than the previous year, but 13% to 15% higher sequentially. (Company Guidance)
- Gross margin for Q4 is anticipated at 25.5% to 26.0%, about 100 basis points lower due to reduced margins on labor disruption revenue. (Company Guidance)
- Operating margin is forecast between 0.2% and 0.8% for the period. (Company Guidance)
Valuation Changes
- Consensus Analyst Price Target has risen slightly from $20.29 to $21.36, reflecting improved market expectations for AMN Healthcare Services.
- Discount Rate has increased moderately from 7.60% to 7.78%, indicating a slightly higher risk premium or required return.
- Revenue Growth outlook has improved, with the year-over-year decline narrowing from negative 2.64 percent to negative 1.67 percent.
- Net Profit Margin is up marginally from 5.27 percent to 5.31 percent, suggesting incremental improvement in profitability.
- Future P/E Ratio has increased from 7.31 times to 7.80 times, signaling a modestly higher valuation multiple assigned by the market.
Disclaimer
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