Enhabit, Inc (EHAB – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Brian Tanquilut from Jefferies maintained a Buy rating on the stock and has a $9.50 price target.
Brian Tanquilut has given his Buy rating due to a combination of factors that highlight Enhabit, Inc’s potential for growth and stability. The company’s recent quarterly performance showed a slight EBITDA beat, which suggests stabilizing fundamentals despite facing challenges such as weather disruptions and contract issues. This stabilization is seen as a promising sign for future multiple expansion, which could lead to stock price appreciation.
Furthermore, Enhabit, Inc’s guidance for fiscal year 2025 indicates potential upside, with expectations of volume growth in both home health and hospice segments. The company’s low valuation, coupled with minimal political and regulatory risks, makes it an attractive investment. Additionally, management’s focus on improving contract terms and expense controls is expected to drive further growth and profitability, supporting the positive outlook on the stock.