The Ensign Group stock price target raised to $195 from $185 at UBS

Published 14/08/2025, 14:12
The Ensign Group stock price target raised to $195 from $185 at UBS

Investing.com - UBS raised its price target on The Ensign Group Inc. (NASDAQ:ENSG) to $195.00 from $185.00 on Thursday, while maintaining a Buy rating on the healthcare services provider. The stock, currently trading near its 52-week high of $166.45, has delivered an impressive 30% return over the past six months. According to InvestingPro data, analysts maintain a Strong Buy consensus on the stock.

The price target increase reflects UBS’s updated earnings estimates following accelerated acquisition activity by the company. The new target is based on a 13x multiple to UBS’s 2027E EBITDAR, shifted forward from its previous 2026E estimates.

The Ensign Group has recently announced several facility acquisitions, bringing its total facility count to 361, according to UBS’s research note.

As a result of this expansion, UBS has adjusted its forecasts for The Ensign Group’s adjusted earnings per share. The firm now projects 2025-2027E adjusted EPS of $6.44 (up from $6.40), $7.37 (up from $7.27), and $8.26 (up from $8.15).

The Ensign Group operates skilled nursing and senior living facilities across multiple states, with its business model focused on acquiring and improving underperforming healthcare operations. With a market capitalization of $9.5 billion, the company has demonstrated strong operational execution and maintains robust cash flows to support its expansion strategy.

In other recent news, The Ensign Group, Inc. reported second-quarter adjusted earnings that exceeded analyst expectations. The company achieved adjusted earnings of $1.59 per share, surpassing the projected $1.55 per share. Revenue for the quarter reached $1.23 billion, slightly above the consensus estimate of $1.22 billion, marking an 18.5% increase from the previous year. Additionally, Ensign raised its 2025 guidance, buoyed by improved occupancy rates and skilled services revenue. In related developments, Stephens raised its price target for Ensign Group to $170 from $165, maintaining an Overweight rating. The research firm highlighted Ensign’s strong fundamentals, with over 20% EBITDA growth in the first half of 2025. This growth was attributed to expanding total facility occupancy and an improved skilled mix. These recent developments reflect positively on Ensign’s financial performance and market outlook.

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