Barclays starts coverage on Encompass Health with 'equal weight' and PT of $57

Encompass Health

14/03/2023 12:21

** Barclays initiates coverage of Encompass Health Corp
 EHC.N  with an "equal weight" rating and PT of $57 on co's
consistent rev growth in the in-patient rehabilitation facility
(IRF) sub-segment within post-acute care
    ** Brokerage, however, says greater risks related to
upcoming IRF rate updates from Centers for Medicare & Medicaid
Services (CMS) are part of its equal-weight rating, in a note
dated March 13
    ** Sees signs of growth such as an improvement in labor
shortages and contract labor expense which suggest EHC may be on
the road to further recovery in 2023
    ** EHC shares currently flat in premarket trading 
    ** 11 of 12 brokerages rate the stock "buy" or higher and
one "hold"; their median PT is $70
    ** Up to Monday's close, stock had fallen ~11.70% YTD
compared with 11.62% decline in S&P 500 Health Care Facilities
sub index  .SPLRCHCLT 

 (Reporting by Reshma Rockie George)
 ((Reshma.George@thomsonreuters.com))