In a report released on August 6, Whit Mayo from Leerink Partners reiterated a Hold rating on Enhabit, Inc, with a price target of $10.00.
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Whit Mayo has given his Hold rating due to a combination of factors influencing Enhabit, Inc’s performance. The company’s second-quarter results showed a slight revenue increase and a stronger-than-expected EBITDA, primarily driven by the Hospice segment. Despite this, the Home Health segment continued to underperform, with EBITDA missing expectations and margins declining.
The Hospice segment demonstrated robust growth, with significant improvements in EBITDA and margins, although there was a slight sequential margin decline. Meanwhile, corporate expenses decreased, surpassing expectations, which is a positive sign. However, the mixed performance across different segments and the modest guidance revision suggest a cautious outlook, justifying the Hold rating.
According to TipRanks, Mayo is a 2-star analyst with an average return of 0.3% and a 45.48% success rate. Mayo covers the Healthcare sector, focusing on stocks such as Tenet Healthcare, Universal Health, and Ardent Health Partners, Inc..
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $9.00 price target.