Truist Securities raises Encompass Health stock price target to $140 on upbeat outlook

Published 14/08/2025, 16:56
Truist Securities raises Encompass Health stock price target to $140 on upbeat outlook

Investing.com - Truist Securities raised its price target on Encompass Health Corp (NYSE:EHC) to $140.00 from $135.00 on Thursday, while maintaining a Buy rating on the stock. The company’s stock is currently trading near its 52-week high of $123.13, having delivered an impressive 29.63% return year-to-date.

The price target increase follows what Truist described as an "upbeat management meeting" that highlighted robust underlying fundamentals for the healthcare provider, driven by strong demand trends and significant unmet sector demand. This optimism is reflected in the company’s strong financial performance, with revenue growing 11.8% over the last twelve months and maintaining dividend payments for 13 consecutive years.

Truist cited Encompass Health’s scale, leading quality capabilities, and attractive financial flexibility as factors contributing to its strong market positioning. The firm also noted ongoing labor improvements and increased technology and artificial intelligence investments as additional positive factors. InvestingPro analysis shows the company maintains a "GREAT" financial health score, with 9 analysts recently revising their earnings expectations upward.

The research firm expects Encompass Health’s strong cash flow and attractive balance sheet to support ongoing growth investment, market share gains, and increased share repurchase activity.

Encompass Health, which operates inpatient rehabilitation hospitals and provides home health and hospice services, has been experiencing brisk development activity according to Truist’s assessment.

In other recent news, Encompass Health Corp reported impressive financial results for the second quarter of 2025. The company exceeded expectations with earnings per share (EPS) of $1.40, surpassing the anticipated $1.21. Additionally, Encompass Health’s revenue reached $1.46 billion, outpacing the forecasted $1.43 billion. These results highlight the company’s strong performance and have garnered positive attention from investors. In another development, Encompass Health announced plans to build a 50-bed inpatient rehabilitation hospital in Haslet, Texas. The facility is expected to open in 2027 and will offer specialized care for patients with various conditions. These recent developments underscore the company’s ongoing growth and expansion efforts.

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