EHAB - Enhabit initiated Neutral at Citi on near-term concerns
- Citi has launched its coverage on the home health and hospice service provider Enhabit, Inc. ( NYSE: EHAB ) with a Neutral recommendation citing concerns over the near-term outlook on its margins amid pressures on reimbursements and cost. The $17 per share price target implies a ~20% downside to EHAB’s last close.
- The analyst Jason Cassorla remains optimistic about EHAB’s long-term growth prospects as he argues that the company, one of the largest U.S. players in the industry, is “well positioned to grow amid the secular theme of shifting more care to the home.”
- However, Cassorla points to uncertainty in EHAB's near-term outlook. He details risks to the company's forward EBITDA generation given the payor mix shift to lower reimbursement from Medicare Advantage, significant reimbursement risk from Medicare Fee-for-Service, and labor pressures.
- EHAB currently has a Sell rating on Wall Street, with only one analyst covering the stock.
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Enhabit initiated Neutral at Citi on near-term concerns