11:23 AM EDT, 05/22/2024 (MT Newswires) -- Encompass Health ( EHC ) is poised for "solid progress" on the development front as about 33% Q1 discharge growth came from new locations, RBC Capital Markets said in a note Tuesday.

"During the quarter, EHC added 51 expansion beds to existing hospitals, with management expecting to add another 93 through the balance of the year," analysts Ben Hendrix and Michael Murray said.

The company is also targeting six de novo hospital openings this year, according to the note.

The analysts expect Encompass Health ( EHC ) to report 2024 earnings of $4.04 per diluted share on revenue of $5.30 billion.

RBC raised Encompass Health's ( EHC ) price target to $95 from $83 and maintained outperform rating on the stock.

Price: 85.50, Change: -0.30, Percent Change: -0.36