Welcome

Encompass Health Partners with Medical Center Hospital of Odessa

Encompass Health (EHC) and has entered into an agreement with Midland Memorial Hospital and Medical Center Hospital of Odessa to be the joint owners of Encompass Health Rehabilitation Hospital of Midland Odessa.

Shares of the largest owner and operator of inpatient rehabilitation hospitals in the U.S have gained 21% over the last year. (See Encompass Health stock charts on TipRanks)

The jointly-owned hospital is an 80-bed inpatient rehabilitation center that serves patients recovering from debilitating illnesses and injuries, including strokes and other neurological disorders, brain injuries, spinal cord injuries, amputations, and other orthopedic ailments.

Through the partnership, the companies aim to enhance the quality of local acute care services at the existing inpatient rehabilitation hospital in the Permian Basin.

Frank Brown, President of Encompass Health’s southwest region, commented, “This tri-venture is a true representation of healthcare providers coming together for the benefit of the community. We’re proud of the great work we’ve accomplished with the team at Midland Memorial Hospital over the years and couldn’t be more excited to bring another leading healthcare provider into our partnership.”

Deutsche Bank analyst Pito Chickering recently upgraded EHC from Hold to Buy and increased the price target from $87 to $104 (30.1% upside potential).

Chickering believes that the company’s risk-reward is attractive at current levels. He thinks that a spinoff is imminent based on the recent management changes and believes the current share price weakness is due to the uncertainty regarding the spinoff multiple.

Consensus among analysts is a Strong Buy based on 6 unanimous Buys. The average Encompass Health price target of $98 implies 22.6% upside potential to current levels.

EHC scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

Related News:
Dover Soars 6.7% on Q2 Revenue Beat and Raised Guidance
HAL Beats on Q2 Earnings; Shares Soar 3.7%
Cognizant to Snap up TQS Integration