EHC - Encompass Health price target trimmed at Jefferies citing a likely spinoff

Mohamad Faizal Bin Ramli/iStock via Getty Images Jefferies analyst Brian Tanquilut thinks that Encompass Health ([[EHC]] -1.6%) could spin off its home health unit during the company’s second-quarter earnings. Last week, Encompass Health named Barbara A. Jacobsmeyer as the CEO of the Home Health and Hospice business, effective immediately. The announcement was followed by the appointment of Crissy Carlisle, the company chief investment relations officer as the unit’s new CFO. According to Tanquilut, the two appointments indicate that “the business is unlikely to be sold and that a public spinoff is the most likely outcome of the company’s strategic review.” Some investors might have opted for a sale, Tanquilut argues, adding that a likely spinoff will enable the Birmingham, Alabama-based company to “more aggressively pursue acquisitions.” However, the analyst has lowered the price target of Encompass Health to $93.00 from $100.00 per share implying a premium of ~15.7% to the last close.

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Encompass Health price target trimmed at Jefferies citing a likely spinoff