Encompass Health added to Analyst Current Favorites list at Raymond James

Raymond James analyst John Ransom added Encompass Health to the firm’s Analyst Current Favorites list and made no change to the Strong Buy rating or $72 price target. Encompass has a well-defined inorganic growth strategy with ~30 new IRF’s and 400 new beds added to existing facilities over the next four years, Ransom tells investors in a research note. He believes its expansion activity from 2023-2026 will drive ~$280M of incremental EBITDA by 2029 and adds roughly 4% to annual EBITDA growth through 2029.