Ensign's (ENSG) higher adjusted earnings and revenue guidance reflects "strong" operational and M&A momentum, RBC Capital Markets analysts said in a Monday note.
The company's new guidance appears achievable considering its track record of operational outperformance, along with momentum in same-store occupancy and acquisitions heading into the second half of the year, the analysts said.
RBC increased Ensign's 2026 adjusted earnings estimate to $7.73 from $7.55, higher than a FactSet consensus estimate of $7.65.
"Following multiple short reports published intra-quarter, we are pleased to see management come forward with greater detail on ENSG's clinical quality," the analysts said.
RBC retained an outperform rating on the stock and increased its price target to $228 from $222.
Price: $180.30, Change: $+2.23, Percent Change: +1.25%