Encompass selloff on report a buying opportunity, says KeyBanc

KeyBanc sees a buying opportunity with Encompass Health (EHC) shares down following a negative New York Times report that focuses on alleged quality deficiencies at its inpatient rehab facilities. The firm does not find the article compelling and believes Encompass’ Q2 report is positioned for a beat. The article reached conclusions by selectively analyzing readmissions data at a subset of Encompass’ facilities, the analyst tells investors in a research note. KeyBanc believes the company has above-average acuity and keeps an Overweight rating on the shares with a $135 price target The stock in afternoon trading is down 10% to $107.87.