UBS reiterates Buy rating on Ensign Group stock, maintains $175 price target

Published 03/07/2025, 15:14
UBS reiterates Buy rating on Ensign Group stock, maintains $175 price target

Investing.com - UBS maintained its Buy rating on The Ensign Group Inc. (NASDAQ:ENSG) with a price target of $175.00, according to a research note published Thursday. The target represents potential upside from the current price of $149, with analyst targets ranging from $155 to $177. According to InvestingPro data, the stock is trading near its 52-week high of $158.45.

The healthcare facility operator currently manages 348 healthcare operations across 17 states, with 44 of these facilities also including senior living operations, UBS analyst AJ Rice noted in the report.

The company’s subsidiaries, including Standard Bearer, own 146 real estate assets, representing a significant portion of the company’s operational footprint.

UBS is currently projecting Ensign Group to end 2025 with approximately 355 total facilities, slightly above the consensus estimate of 351 facilities. This represents continued growth from 297 facilities at the end of 2023 and 327 facilities at the end of 2024.

The $175 price target is based on approximately 13 times UBS’s estimated 2026 EBITDAR for the company, reflecting the firm’s positive outlook on Ensign’s expansion strategy and operational performance.

In other recent news, The Ensign Group, Inc. has made significant expansions to its portfolio by acquiring several skilled nursing facilities. The company announced it has acquired Timber Springs Transitional Care in Boise, Idaho, a 120-bed facility, and both the real estate and operations were included in this transaction. Additionally, Ensign has purchased the real estate of Duncanville Healthcare and Rehabilitation Center in Texas, which will be operated by a third party under a long-term lease. These acquisitions have expanded Ensign’s operations to 348 healthcare facilities across 17 states.

Furthermore, Ensign has also acquired two facilities in Coeur d’Alene, Idaho, namely Ironwood Rehabilitation and Care Center and Lakeside Rehabilitation and Care Center, increasing its presence in the state. In California, Ensign acquired Toluca Lake Transitional Care in North Hollywood, part of a larger transaction involving multiple facilities. These facilities will be operated under long-term lease agreements with third-party landlords.

In leadership changes, Barry Port, the current CEO, has been appointed as the new Chair of the Board of Directors, succeeding Christopher Christensen, who will retire in September 2025. Marivic Uychiat has been appointed to fill Christensen’s board seat, bringing extensive experience in skilled nursing and post-acute care. These developments reflect Ensign’s ongoing strategy to acquire and lease healthcare-related properties while maintaining leadership continuity.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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