Enhabit upgraded to Buy from Hold at Jefferies

Jefferies upgraded Enhabit (EHAB) to Buy from Hold with a price target of $9.50, up from $8.25. The company’s announcement of a new contract with UnitedHealth (UNH) that pays it a higher rate than its previous agreement eliminates an overhang and execution risk associated with potential revenue and EBITDA losses, the analyst tells investors in a research note. The firm believes the contract should enable Enhabit to focus more on driving growth rather than plugging the potential earnings hole that would have been caused by a UnitedHealth exit.