UPDATE: Citigroup Upgrades Cross Country Healthcare to Buy on Industry Cycle Exposure

Citigroup raised its rating on Cross Country Healthcare

from Neutral to Buy and established a price target of $7 a share. Citigroup commented, "We are upgrading shares of CCRN from Neutral to Buy and establishing a 12month price target of $7 (+~73%). CCRN has materially lagged peer AHS' fundamental and stock performance YTD, yet we believe both companies are essentially exposed to the same industry cycle. Further, we expect recent MSP contract gains to become more evident in 2013. Finally, the 2008-2010 cycle of hospital staff reductions is poised for a new growth cycle if Obamacare is implemented." Cross Country Healthcare closed at $4.05 on Tuesday.