William Blair analyst Ryan Daniels has reiterated their bullish stance on EHC stock, giving a Buy rating on July 21.
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Ryan Daniels has given his Buy rating due to a combination of factors including Encompass Health’s strong financial performance and positive future outlook. The company reported impressive second-quarter results, with revenue reaching $1.458 billion, marking a 12% increase compared to the previous year and surpassing market expectations. This growth was driven by consistent discharge growth and an increase in net patient revenue per discharge, alongside effective expense management leading to strong operating leverage.
Furthermore, management has raised its guidance for the fiscal year 2025, indicating confidence in continued growth. The updated guidance includes a 5% increase in EPS and a 12% boost in free cash flow outlook, suggesting robust financial health. Despite recent stock volatility due to negative press, Daniels views this as a temporary setback and believes the core fundamentals of Encompass Health remain strong, presenting a solid investment opportunity.
In another report released on July 21, Jefferies also maintained a Buy rating on the stock with a $130.00 price target.
Based on the recent corporate insider activity of 91 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EHC in relation to earlier this year.