KeyBanc on Encompass Health Corp (EHC): 'Thoughts on Recent Stock Weakness'

KeyBanc analyst Matthew Gillmor reiterated an Overweight rating and $140.00 price target on Encompass Health Corp (NYSE: EHC).

The analyst commented: "Thoughts on Recent Stock Weakness; EHC's stock is down 25% since 3Q reporting (vs. SPX ~flat%), and valuation is near historical trough levels at 9x EBITDA. We think there are two primary drivers: 1) Concern 4Q SS volumes may be somewhat muted due to the timing of de novo facilities entering the SS base; 2) Uncertainty regarding the TEAM value-based care model and potential impact on IRF volumes in 2027. We don't necessarily expect EHC's 4Q report on Thursday will be a catalyst. However, we think these recent concerns are overblown and view the pullback as an attractive entry point for a durable, high-quality secular grower.

For an analyst ratings summary and ratings history on Encompass Health Corp click here. For more ratings news on Encompass Health Corp click here.

Shares of Encompass Health Corp closed at $94.36 yesterday.

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