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Encompass Health selloff on NY Times report overdone, says Mizuho

Mizuho views the selloff yesterday in shares of Encompass Health (EHC) following the New York Times report questioning the quality of the company’s care as overdone. The article “presents a selective one-sided perspective,” the analyst tells investors in a research note. Mizuho says the ten patients mentioned in the article represent less than 0.001% of all Encompass patients since 2021. The firm believes the company’s earnings viability remains high and reiterates an Outperform rating on the name. It would buy the stock on the weakness.

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