UPDATE: Citi Starts Enhabit Home Health & Hospice (EHAB) at Neutral
- U.S. stocks lower at close of trade; Dow Jones Industrial Average down 1.54%
- Micron Technology (MU) Shares Decline After Revenue, Guidance Misses Expectations
- Nike Shares Down 2% Despite Better Than Expected Q1 Results
- Apple (AAPL) Extends Decline as BofA Downgrades to Neutral on More Balanced Risk/Reward
- Meta Platforms (META) to Freeze Hiring and Restructure Teams - Bloomberg
Citi analyst Jason Cassorla initiates coverage on Enhabit Home Health & Hospice (NYSE: EHAB) with a Neutral rating and a price target of $17.00.
The analyst comments "We are initiating coverage of Enhabit (EHAB) with a Neutral/High Risk (2H) rating and a $17 target price. As one of the largest home health and hospice operators in the U.S., EHAB as well positioned to grow amid the secular theme of shifting more care to the home. Its scale and density, focus on clinical outcomes, and productivity dynamics should bode well for solid organic growth trends, with further growth centered on acquisitions amid a highly fragmented market. That said, the near-term outlook is clouded via material reimbursement risk from FFS Medicare, payor mix shift to lower relative reimbursement from MA, and the pressured labor backdrop that all represent risks to forward EBITDA generation for the entity. As a result, we are optimistic around the long-term growth prospects, but take a more reserved near-term view as we look to gain comfort in margin considerations amid these reimbursement and cost pressures."
Shares of Enhabit Home Health & Hospice closed at $14.30 yesterday.
You May Also Be Interested In
- CyberArk Software Well Positioned For Double-Digit Profitability this Coming Year - Cowen
- Cogstate (CGS:AU) (COGZF) PT Raised to AUD2.60 at Canaccord Genuity
- UPDATE: Stifel Starts Eagle Bulk Shipping (EGLE) at Buy
Create E-mail Alert Related CategoriesAnalyst Comments, New Coverage
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!