Encompass Health: Solid Q4 Beat, Confident 2026 Outlook, and Contained Policy Risks Create Attractive Buy-Rated Risk/Reward

William Blair analyst Jared Haase has reiterated their bullish stance on EHC stock, giving a Buy rating on February 3.

Jared Haase has given his Buy rating due to a combination of factors that reflect both solid current performance and a manageable risk profile going forward. He points to Encompass Health’s fourth-quarter results, where revenue rose about 10% year-over-year and adjusted EBITDA exceeded consensus by roughly 7%, as evidence that the company is executing well operationally. Key operating metrics such as 5%-plus discharge growth, improving same-store volumes, and higher net patient revenue per discharge underscore the strength of the company’s core business, while occupancy gains further support the view that demand remains healthy.

In addition, management’s 2026 outlook calling for high single-digit revenue growth and EBITDA guidance that broadly aligns with Street expectations reinforces confidence in the medium-term growth trajectory. Haase also notes that concerns around the new TEAM bundled payment model from CMS appear contained, with only a small portion of 2024 discharges expected to be affected, which he views as manageable and helpful in easing a recent overhang on the stock’s narrative. With shares having sold off meaningfully despite these solid fundamentals and largely in-line long-term guidance, he sees an attractive risk-reward setup that, in his view, justifies a Buy rating.

In another report released on February 3, TipRanks – Google also reiterated a Buy rating on the stock with a $104.00 price target.