Leerink Partners analyst Whit Mayo has reiterated their bullish stance on EHC stock, giving a Buy rating today.
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Whit Mayo has given his Buy rating due to a combination of factors that highlight Encompass Health’s strong financial performance and growth potential. The company’s second-quarter results for 2025 were particularly impressive, with a significant 17% growth in EBITDA and robust increases in same-store discharges and fee-for-service revenues. This performance exceeded expectations, with EBITDA beating estimates by nearly 8%, and the company’s outlook for 2025 has been raised, indicating a conservative yet optimistic future projection.
Encompass Health’s strategic position is further strengthened by its minimal exposure to HIX/MDCD and its strong demand characteristics. The company benefits from unique tailwinds associated with Medicare Advantage, contributing to its positive revision story. Additionally, the company’s operating leverage and stable rates add to its financial robustness, making it an attractive investment opportunity. The raised guidance for 2025, with increased revenue and adjusted EBITDA expectations, underscores the company’s strong momentum and potential for continued growth.
In another report released today, UBS also maintained a Buy rating on the stock with a $140.00 price target.
EHC’s price has also changed slightly for the past six months – from $101.160 to $109.500, which is a 8.24% increase.