AMN Healthcare Earnings: Healthy Utilization May Aid Turnaround, Despite Near-Term Pressures

Narrow-moat AMN Healthcare turned in first-quarter results in line with our expectations. We are maintaining our $95 fair value estimate, as we continue to see near-term pressure from healthcare providers on contingent labor spending. Despite a soft market environment, we believe AMN’s network effect moat source remains intact given its leadership in healthcare staffing. With rising healthcare utilization trends, we expect a turnaround of AMN’s nursing and allied business as soon as 2025.