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UPDATE: Citi Starts Enhabit Home Health & Hospice (EHAB) at Neutral

August 18, 2022 5:16 AM EDT
Get Alerts EHAB Hot Sheet
Price: $14.59 -1.22%

Rating Summary:
    1 Buy, 2 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 11 | New: 34
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(Updated - August 18, 2022 5:16 AM EDT)

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."

For an analyst ratings summary and ratings history on Enhabit Home Health & Hospice click here. For more ratings news on Enhabit Home Health & Hospice click here.

Shares of Enhabit Home Health & Hospice closed at $14.30 yesterday.


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