On Wednesday, Truist Securities updated its outlook on Cross Country Healthcare (NASDAQ:CCRN), raising the price target to $18.61 from the previous $15.00, while maintaining a Hold rating on the stock.
This adjustment follows the announcement that Cross Country Healthcare, which InvestingPro data shows maintains a strong financial health score of GREAT and holds more cash than debt on its balance sheet, has entered into an acquisition agreement with Aya Healthcare, a private company, for $18.61 per share in cash. This offer is notably a roughly 67% premium over the stock's closing price on Tuesday.
Additionally, the analyst remarked on the broader implications of the deal, "More broadly, we think this is an encouraging signal that the largest Healthcare Staffing company in the country (Aya had ~$9B in 2023 revenues) is seemingly confident enough demand declines are leveling off to make a sizeable acquisition.
The analyst from Truist Securities quoted, "Cross Country Healthcare (CCRN, Hold) has agreed to be acquired by Aya Healthcare for $18.61 in cash, representing a ~67% premium to yesterday's close. The transaction is expected to close in 1H25 and we expect shareholders will approve the transaction."
Additionally, the analyst remarked on the broader implications of the deal, "More broadly, we think this is an encouraging signal that the largest Healthcare Staffing company in the country (Aya had ~$9B in 2023 revenues) is seemingly confident enough demand declines are leveling off to make a sizeable acquisition."
In conclusion, Truist Securities has increased its price target for Cross Country Healthcare to align with Aya Healthcare's acquisition bid, while the Hold rating remains unchanged.
In other recent news, Aya Healthcare is set to acquire Cross Country Healthcare in an all-cash transaction valued at approximately $615 million, expanding Aya's coverage to include Cross Country's work in non-clinical settings. The merger, approved by Cross Country's Board of Directors, is expected to offer immediate value to Cross Country stockholders. Upon completion, Cross Country will become a privately held company, transitioning from its strong liquidity position and minimal debt levels.
Meanwhile, Cross Country Healthcare disclosed its Q3 2024 financial results and provided an outlook for Q4 2024. The company's leadership, including President and CEO John Martins and CFO Bill Burns, led the earnings call, discussing both the company's performance and future expectations.
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