UPDATE: Cantor Fitzgerald Initiates Ensign Group at Buy on Attractive Growth

In a report published on Friday, Cantor Fitzgerald analyst Joseph D. France initiated coverage on Ensign Group ENSG with a Buy rating and a $40 price target.

In the report, Cantor Fitzgerald commented that, "Ensign's compound annual EPS growth has been 17.6% since its 2007 IPO, and the company has continued to report strong results in a difficult environment of economic weakness and cuts in reimbursement. Ensign's earnings increased 9% in 2012, despite an 11% cut ($78 per day) in Medicare reimbursement, by expanding services and capitalizing on the market's consolidation." He also noted that, "Ensign's opportunity stems from its post-acute care focus, its geographic reach, the breadth of its services and its substantially more cost-effective care relative to other providers, particularly short-stay acute care hospitals. The market increasingly favors integrated systems and lower cost settings, and the demand for these services should continue growing as the population ages."

Ensign Group closed on Thursday at $35.86