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Encompass Health: Strong Financial Performance and Growth Prospects Justify Buy Rating

Encompass Health: Strong Financial Performance and Growth Prospects Justify Buy Rating

Bank of America Securities analyst Joanna Gajuk reiterated a Buy rating on Encompass Health (EHCResearch Report) today and set a price target of $125.00.

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Joanna Gajuk’s rating is based on Encompass Health’s strong financial performance and growth potential. The company delivered results that exceeded expectations, with adjusted EBITDA significantly surpassing consensus estimates. This positive performance is attributed to better-than-expected revenues and improved margins despite challenges in same-store volumes.
Additionally, Encompass Health’s guidance is considered conservative, with historical trends showing that the company often outperforms its initial forecasts. The outlook suggests robust year-over-year growth in EBITDA, driven by expansions such as new locations and bed additions. Given these factors, Gajuk reiterates a Buy rating, highlighting the company’s attractive growth prospects in the upcoming years.

According to TipRanks, Gajuk is a 3-star analyst with an average return of 2.2% and a 57.82% success rate. Gajuk covers the Healthcare sector, focusing on stocks such as UnitedHealth, Chemed, and Humana.

In another report released today, Barclays also maintained a Buy rating on the stock with a $118.00 price target.

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