RBC Capital analyst Ben Hendrix maintains $Encompass Health (EHC.US)$ with a buy rating, and adjusts the target price from $95 to $105.
According to TipRanks data, the analyst has a success rate of 62.2% and a total average return of 11.9% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Encompass Health (EHC.US)$'s main analysts recently are as follows:
Encompass Health has conveyed a positive stance regarding ongoing business tendencies and anticipates further growth in demand for its services. This follows a noteworthy streak where the company has consistently experienced a growth in same store discharges exceeding 4% for eight successive quarters, aligning with the upper threshold of their 2%-4% goal. Management, while not elaborating on the third-quarter performance, highlighted certain factors that might benefit the current yearly forecast. One such point is the assumption that new facilities will take longer to reach positive EBITDA compared to the previous year; however, if these facilities achieve a ramp-up rate similar to last year, it could signify potential upside.
The firm is revising its projections based on the company's Q2 earnings outperformance reported last month. It anticipates a persistent robust demand for post-acute services, supported by strong hospital admission growth projected by operators in the coverage through the end of the year, in addition to high hospital inpatient acuity and an enhancement in the length of stay.
Note:
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