Bank of America Securities analyst Joanna Gajuk has reiterated their bullish stance on EHC stock, giving a Buy rating yesterday.
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Joanna Gajuk’s rating is based on several compelling factors that highlight Encompass Health’s potential for growth. Despite a recent decline in stock price due to a negative article, the concerns raised involved less than 1% of the company’s patient volume. This indicates that the issues are not representative of the overall quality of Encompass Health’s services. Furthermore, the company continues to form partnerships with acute hospitals, suggesting a strong industry position.
Joanna Gajuk also emphasizes the company’s promising growth prospects, supported by a robust pipeline of new facilities and beds. The low penetration rate of inpatient rehabilitation services presents an opportunity for expansion. Additionally, Encompass Health is largely shielded from upcoming industry reimbursement and policy changes, which could negatively impact other companies. These factors, combined with the belief that current market estimates are conservative, underpin the Buy rating with a price objective of $140.
In another report released yesterday, KeyBanc also maintained a Buy rating on the stock with a $135.00 price target.