Enhabit initiated with a Sell at UBS

UBS analyst Andrew Mok initiated coverage of Enhabit (EHAB) with a Sell rating and $12 price target. Following the July spin-out from Encompass (EHC), Enhabit’s short history as a public company has already included two misses and two negative guidance revisions, which represent a 13% reduction to the company’s initial pro-forma guidance, the analyst tells investors in a research note. Mok further notes few cost or rate initiatives, continued concerns around declining FFS growth, and lower inpatient hospital utilization as headwinds for Enhabit.