Enhabit initiated with a Buy at Stifel

Stifel analyst Tao Qiu initiated coverage of Enhabit with a Buy rating and $17 price target. Enhabit has built itself into a top provider in half of the 34 states in which it operates through acquisition and de novo activities to become the fourth largest skilled home health services provider, Qiu tells investors. There are "plenty of operating challenges near term," but Qiu believes investor expectations are low compared to incremental improvement in fundamentals and the long-term bullish growth outlook of the sector, the analyst added.