Truist Analyst Raises Encompass Health Price Target to $140

Truist analyst David MacDonald raised Encompass Health's price target to $140 from $135 and maintained a Buy rating. The firm sees "robust" fundamentals due to strong demand trends, scale, ongoing labor improvement, increased artificial intelligence investment, and development activity. The analyst believes Encompass is well-positioned for growth.

Truist Securities has raised its price target for Encompass Health Corp (NYSE: EHC) to $140 from $135, while maintaining a Buy rating on the stock. The upgrade comes following an "upbeat management meeting" that highlighted robust underlying fundamentals for the healthcare provider [1].

Encompass Health has delivered an impressive 29.63% return year-to-date, with its stock currently trading near its 52-week high of $123.13. The company's revenue grew by 11.8% over the last twelve months, and it has maintained dividend payments for 13 consecutive years [1].

Truist cited Encompass Health's scale, leading quality capabilities, and attractive financial flexibility as key 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. 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 [1].

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 [1].

Encompass Health has also 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 [1].

The analyst upgrade comes amidst a diverse range of analyst ratings for Encompass Health. Over the last three months, 4 analysts have analyzed the stock, with a mix of bullish and bearish sentiments [2]. The current average price target for Encompass Health is $137.5, with a high estimate of $140.00, and a low estimate of $135.00 [2].

Encompass Health's financial health indicators also reflect strong performance. The company's market capitalization, revenue growth, net margin, return on equity (ROE), return on assets (ROA), and debt management ratio all surpass industry standards [2].

References:
[1] https://www.investing.com/news/analyst-ratings/truist-securities-raises-encompass-health-stock-price-target-to-140-on-upbeat-outlook-93CH-4193083
[2] https://www.benzinga.com/insights/analyst-ratings/25/08/47118837/analyst-expectations-for-encompass-healths-future