Shares of Encompass Health Corporation (EHC) surged 6.79% on Monday morning after the healthcare services provider reported strong third-quarter earnings that topped Wall Street expectations, leading to a wave of positive analyst reactions.

For the quarter ended September 30, Encompass Health posted adjusted earnings per share of $1.03, higher than the analyst consensus estimate of $0.94. Revenue climbed 11.9% year-over-year to $1.35 billion, also exceeding forecasts of $1.33 billion. The company reported net income of $108.2 million for the quarter.

Following the earnings beat, Barclays raised its price target on EHC to $116 from $109 while maintaining an Overweight rating on the stock. Keybanc also reiterated an Overweight rating on Encompass Health. Analysts cited the company's solid financial performance and bright growth prospects as reasons for their bullish views.