Model Update For CCRN

Analysts at Citigroup reiterate their "hold" rating on Cross Country Healthcare Inc CCRN, while revising their estimates for the company. The target price for CCRN has been raised from $8.50 to $10. Even after making several changes in the model, the analysts continue to “value CCRN on a normalized earnings basis, and higher gross margins expected for 2010 leads to a modest increase in our trough earnings cycle calculation.” The growth in FTE’s in two straight quarters is a good sign for the company. Citigroup says that it still believes “the current equity valuation already largely discounts a recovery and the normalized earnings power of the company.” Citigroup has raised its EPS estimate for 2010 from $0.15 to $0.18, while reducing the EPS estimate for 2011 from $0.27 to $0.25 due to “lower estimated revenues but higher gross margins on expanding bill/pay spreads.” More Analyst Ratings here