Analyst Ryan Langston of TD Cowen maintained a Hold rating on Enhabit, Inc, with a price target of $9.00.
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Ryan Langston has given his Hold rating due to a combination of factors surrounding Enhabit, Inc’s current financial outlook and market conditions. The company’s revenue from home health services remained relatively flat year-over-year, with growth in volume being counterbalanced by a shift in revenue mix towards higher Medicare Advantage, while the decline in Fee-for-Service mix has slowed. Additionally, disruptions from payer renegotiations and branch closures have negatively impacted revenue, though without these disruptions, a slight growth in home health revenue would have been observed.
Moreover, the hospice segment showed positive momentum with consistent growth in average daily census for five consecutive quarters, and all new hospice locations in 2024 are profitable. However, uncertainties remain, particularly concerning the final 2026 Home Health rule from CMS, which could introduce pricing challenges. Despite these mixed signals, the company’s 2025 and 2026 adjusted EBITDA estimates remain unchanged, and the price target is maintained at $9 per share, reflecting a cautious but stable outlook.
According to TipRanks, Langston is an analyst with an average return of -4.8% and a 43.75% success rate. Langston covers the Healthcare sector, focusing on stocks such as UnitedHealth, Elevance Health, and Molina Healthcare.