Mizuho analyst, Sheryl Skolnick, thinks Amedisys Inc's (NASDAQ: AMED) turnaround continues to impress as it proceeds on multiple fronts, driving better than expected 4Q15 results, meaningful 2016 improvements and likely strong 2017 growth. Increasing transparency into the progress, costs, timing and returns to the turnaround strategies are making the Street increasingly confident and supported a strong move in the stock. The analyst thinks AMED is strongly positioned not only as a post-acute partner, but also as a key player in the transformation of care delivery. No change to Buy or $49 PT.

Strong results, details of costs and better than expected returns from the system conversion and 'comfort' with Street 2017 estimates likely boosted investor confidence in the AMED story and the stock price after earnings. However there are other positives. The system investments/ costs as being $8.6mm in total for 2016 (not the $2.5mm folks heard on the call), generating permanent cost savings of $46.5mm starting in late 3Q16 and being reflected in results in full by 4Q17. That's an impressive and fast return.

Execution at the segment level remains strong. Same store metrics in both home health and hospice (up 8% and 21%, respectively) across all payers and strong growth in EBITDA are impressive. Home health still has two more quarters of easier comps, hospice only at most one, but acquisitions will add consolidated performance.

Once the turn is done, she sees AMED, with its better than anticipated quality metrics, as being very well positioned to not only be a strategic post-acute partner with at-risk hospitals and ACOs (etc.), but also to change the home care model from rehab to hospital-care-at-home. There is the potential for another leg of growth beyond the turn and into the heart of the transformation of health care.

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Shares of Amedisys closed at $42.72 yesterday.