In a report released on February 21, Ann Hynes from Mizuho Securities reiterated a Buy rating on Encompass Health (EHC – Research Report), with a price target of $110.00.
Ann Hynes has given her Buy rating due to a combination of factors that indicate a strong future performance for Encompass Health. The company reported impressive Q4:24 results, with adjusted EPS exceeding consensus estimates and notable organic discharge growth. These outcomes suggest that Encompass Health is well-positioned for revenue and EBITDA growth in 2025, supported by favorable utilization trends, stable cost dynamics, and a robust inpatient business.
Furthermore, Ann Hynes highlights the company’s strategic initiatives, such as de novo expansions and mergers and acquisitions, as key drivers for future growth. The company’s focus on adding beds and its insulation from potential regulatory risks in Washington, due to the nature of its admissions and Medicare reimbursements, further strengthen its outlook. The report also notes that potential tariffs are unlikely to impact the company significantly, which is advantageous given its expansion plans. Overall, these factors contribute to a high earnings visibility for Encompass Health, justifying the Buy rating.
Hynes covers the Healthcare sector, focusing on stocks such as Quest Diagnostics, Walgreens Boots Alliance, and UnitedHealth. According to TipRanks, Hynes has an average return of 9.0% and a 58.18% success rate on recommended stocks.
In another report released on February 14, Truist Financial also reiterated a Buy rating on the stock with a $116.00 price target.