
Enhabit Inc (EHAB) Stock Forecast & Price Target
Enhabit Inc (EHAB) Analyst Ratings
Bulls say
Enhabit Inc is actively advancing its payor innovation strategy, with a significant 45% of non-Medicare visits under contracts that provide improved rates, reflecting a slight increase of 2 percentage points quarter-over-quarter. The hospice segment is expected to achieve a core growth rate of 2.5% in 2024, bolstered by a successful new case management model that has enhanced hospice average daily census by 7% and improved revenue per day by 3.9% due to updated Medicare rates. Additionally, Enhabit has seen a noteworthy improvement in adjusted EBITDA margins, which increased by 1,100 basis points to 22.9%, demonstrating operational efficiency despite a minor year-over-year decline in revenue per episode.
Bears say
Enhabit Inc. has demonstrated operational stability; however, its financial outlook remains negative, primarily due to a significant EBITDA decline of 13% year-over-year in the home health segment. The company faces numerous downside risks, including potential regulatory changes from CMS, an inability to achieve internal growth targets, and elevated leverage that could jeopardize covenant compliance and hinder growth flexibility. Additionally, a projected $15 million reduction in Medicare revenue from a 2.6% cut and an ongoing challenging reimbursement environment contribute to a forecast of flat earnings over the multi-year horizon, raising concerns regarding long-term financial viability.
This aggregate rating is based on analysts' research of Enhabit Inc and is not a guaranteed prediction by Public.com or investment advice.
Enhabit Inc (EHAB) Analyst Forecast & Price Prediction
Start investing in Enhabit Inc (EHAB)
Order type
Buy in
Order amount
Est. shares
0 shares