UBS has shifted its recommendation on Enhabit Home Health & Hospice (NYSE: EHAB) from Buy to Neutral, while raising its target price to $13.80 from $12.00. The bank said the move follows Enhabit’s announcement that it has reached a definitive agreement to be acquired by Kinderhook Industries, a middle market private equity firm, for $13.80 in cash per share.
The agreed purchase price implies a total enterprise value of roughly $1.1 billion for Enhabit. That $13.80-per-share cash offer represents about a 24.4% premium to Enhabit’s closing share price on February 20, 2026.
Analysts and the company point to valuation metrics tied to the transaction. The deal corresponds to approximately 10 times current consensus 2027 adjusted EBITDA estimates, while using the February 20 closing price yields an EV/EBITDA multiple of about 9 times. Enhabit’s trailing twelve-month EBITDA stands at $87.4 million and the company’s market capitalization at the time was $561 million, figures that place the acquisition valuation near InvestingPro’s Fair Value estimate.
Enhabit’s board said it assessed the business’s present condition, outlook and opportunities and concluded that the transaction maximizes shareholder value. The company said being privately owned by Kinderhook will provide access to resources and expertise intended to support longer-term investments in personnel, clinical quality and innovation without the short-term pressures of public markets.
Company disclosures state there was no formal strategic review process in place and that the board regarded the Kinderhook proposal as the optimal route for Enhabit and its shareholders. The acquisition agreement does not include go-shop provisions; it remains subject to customary fiduciary exceptions and approvals.
Analyst responses and revised targets
The acquisition announcement has prompted multiple research firms to adjust their views and price targets on Enhabit. Jefferies reduced its rating to Hold and set a price target at $13.80. Leerink Partners increased its price target from $9.50 to $13.80 while maintaining a Market Perform rating. Truist Securities also raised its price target to $13.80 from $10.50 and retained a Hold designation.
Across the street, various analysts have characterized the transaction as implying a valuation in the range of roughly 10 to 10.6 times estimated EBITDA for 2026, highlighting how differing model assumptions map to similar headline multiples tied to the deal.
Implications and context
For investors and market participants, the agreement offers a clear near-term valuation outcome at $13.80 per share, and it has caused brokerage firms to realign coverage and targets accordingly. The transaction also shifts strategic control of Enhabit from the public markets to a private equity owner, which the company says will allow a focus on multi-year investments in clinical and operational priorities.
While valuation multiples and premium to market price are explicit in the deal terms, the company did not pursue a formal auction process and the pact excludes a go-shop mechanism. Those governance and process details are material to shareholders evaluating the transaction.
Note: The article reflects company disclosures and analysts' published reactions tied to the announced all-cash acquisition at $13.80 per share and related valuation metrics.