Analyst Whit Mayo of Leerink Partners reiterated a Hold rating on Enhabit, Inc (EHAB – Research Report), boosting the price target to $10.00.
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Whit Mayo has given his Hold rating due to a combination of factors impacting Enhabit, Inc. The company’s performance in the first quarter of 2025 showed a mixed picture, with hospice services exceeding expectations while home health services underperformed. Despite improvements in hospice census and operational stability, the home health segment continues to face challenges, particularly in terms of rate and mix, which are expected to hinder significant growth over the next few years.
Additionally, while there has been progress in payer innovation strategies and non-Medicare revenue per visit has increased, the overall rate environment for home health remains flat to declining. The hospice segment, however, has shown strong growth, attributed to increased referrals and improved conversion rates. Despite these positive aspects, the overall outlook for Enhabit, Inc. remains cautious, leading to a Hold rating with a slight increase in price target to $10, reflecting limited growth potential.
In another report released on May 8, TD Cowen also maintained a Hold rating on the stock with a $9.00 price target.
Based on the recent corporate insider activity of 68 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 EHAB in relation to earlier this year.