Encompass Health initiated with an Equal Weight at Barclays

Barclays analyst Steve Valiquette initiated coverage of Encompass Health with an Equal Weight rating and $57 price target. The analyst sees Encompass as well positioned in the inpatient rehabilitation facilities subsegment with subsiding labor pressure and strong organic growth via de novo facility openings. However, greater risks related to upcoming IRF rate updates from Centers for Medicare and Medicaid Services are a concern, the analyst tells investors in a research note.