Analysts Set $142.86 Average Twelve-Month Target, Majority Rate Encompass Health Buy

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Eleven analysts covering Encompass Health stock issued an average “Buy” recommendation, including eight buy, two strong buy and one hold. Their average 12-month price target stands at $142.86.

1. Consensus Rating Highlights Positive Analyst Sentiment

Eleven analysts currently cover Encompass Health, with eight assigning a buy rating, two a strong-buy and one a hold. The group’s average 12-month price target sits at $142.86, implying roughly 20% upside from recent trading levels. Raymond James upgraded to strong-buy on October 31, while Barclays raised its target from $141 to $150 and maintained an overweight view. KeyCorp recently lifted its target from $135 to $140, underscoring improving confidence in the company’s growth trajectory and cash-flow generation.

2. Upcoming Fourth Quarter Earnings and Investor Call

Encompass Health will report results for the quarter ended December 31 after the market closes on Thursday, February 5, followed by an investor conference call at 10:00 a.m. ET on Friday, February 6 (dial-in: 800-267-6316 or 203-518-9783, conference ID EHCQ425). The webcast and replay will be available on the company’s investor website. Investors will focus on same-facility rehabilitation admissions growth, margin trends in inpatient hospitals and home health services, and updates to full‐year guidance for 2026.

3. Recent Financial Performance and Balance Sheet Strength

In the March quarter, Encompass Health delivered $0.93 earnings per share on $136.3 million of revenue, translating to a 9.33% net margin and a 17.84% return on equity. Analysts forecast full-year EPS of 4.8, reflecting steady organic volume gains and disciplined cost control. The company carries a debt-to-equity ratio of 0.76 and maintains a current and quick ratio of 1.14, supporting investment in technology and facility expansion. With a market capitalization near $10.4 billion, a P/E of 19.5, a P/E/G of 1.69 and a beta of 0.74, Encompass Health trades in line with peers while offering a modest dividend yield of 0.7% and a 14.4% payout ratio.

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