Jefferies has revised its view on Enhabit Home Health & Hospice (NYSE: EHAB), moving the stock from Buy to Hold and setting a new price objective of $13.80, up from $12.50. The firm made the change after Enhabit entered into a definitive agreement to be acquired by Kinderhook Industries in an all-cash transaction that fixes the consideration at $13.80 per share.
The proposed deal values Enhabit at approximately $1.1 billion in aggregate. That headline figure translates into a valuation of roughly 10 times management and street estimates for adjusted EBITDA in 2026, a multiple cited in analyses accompanying the transaction.
The acquisition price sits above a Fair Value estimate of $12.59 and compares to a stock price of $13.59 at the time of reporting, following a 35% rally in the shares over the prior six months. Under the terms of the agreement, the transaction would take the home health and hospice operator private.
Jefferies' note accompanying the rating change indicated that the firm does not foresee antitrust issues related to the deal and expects the transaction to close within the second-quarter timeline guided by Enhabit's management. The bank also stated it does not anticipate competing bids emerging for the company.
Other broker-dealer responses to the acquisition were similarly focused on valuation and ratings neutrality. Leerink Partners raised its price target on Enhabit to $13.80 from $9.50 while retaining a Market Perform rating. Truist Securities likewise moved its target to $13.80 from $10.50 and kept a Hold rating. Estimates cited by these analysts place the transaction multiple in a range of about 10.3 to 10.6 times estimated adjusted EBITDA for 2026.
From a market perspective, the deal effectively locks in a premium to the prior trading level: the $13.80 per-share consideration represents roughly a 24% premium to the company's closing price immediately before the announcement. With the agreement in place, analyst coverage has shifted to reflect the fixed buyout price and the implications of a take-private outcome for public shareholders.
For investors and market participants tracking Enhabit, key focal points remain the finalization of customary closing conditions and the timeline for completing the transaction. While Jefferies expresses confidence regarding regulatory clearance and the absence of rival offers, the company will nonetheless transition from a publicly traded entity to a private one if the agreement proceeds to closing as currently structured.
Contextual note: The foregoing reflects analyst ratings and price-target changes tied to the announced acquisition and the public disclosures made about the transaction. The coverage revisions by Jefferies, Leerink Partners, and Truist align in moving price targets to the $13.80 per-share level while maintaining neutral-to-hold stances.