AMN Healthcare Services Pulled From Avondale's Conviction Buy List, Reserved For More Patient Investors

Avondale Partners' Randle Reece removed AMN Healthcare Services, Inc. (NYSE: AHS) from the firm's conviction list while raising the company's price objective from $42.00 to $43.00.

The list was directed toward short-term investments driven by "specific catalysts," and AMN Healthcare Services does not fit that description according to Reece. "We find the stock to be suitable for more patient investors," said the analyst.

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Reece did acknowledge that "AHS is the leading company in a segment of the US staffing market that is growing much faster than any other." The EV/EBITDA premium is "unusually wide," however, and increasing labor costs are also a concern, as is an estimated "tightening labor supply" in the medical services industry looms.

AMN Healthcare closed Monday trading down 0.40 percent at $37.26.