Analyst Note| Debbie S. Wang |
AMN reported strong second-quarter performance that echoed its record-breaking first quarter, though we do not believe recent performance represents a new normal. We are raising our fair value estimate on narrow-moat AMN to $71 per share, up from $55 previously. Labor shortages and resumed healthcare utilization kept revenue up this quarter. Management’s third-quarter guidance provides some clarity for 2021 results, suggesting a sharper decline in the third quarter, which we expect to stabilize in the fourth quarter.