Ensign Group's (ENSG) recent stock price drop presents a buying opportunity, as regulatory and reimbursement concerns are "overblown," Oppenheimer said in a note Monday.

With the company maintaining its strong operational performance, it should be able to handle volatility in managed care admissions and referrals, which represent about 14% of patient days and 20% of revenue, Oppenheimer analysts said.

Ensign's occupancy percentage has risen to 84.3% but remains below its competitors'. The difference can be partially explained by market-related factors, and presents a long-term upside for the company, the analysts said.

Oppenheimer also pointed to Ensign's acquisition pipeline as a driver of growth, noting that the company has added 71 locations since the start of 2025 and continues to see a healthy pipeline of merger and acquisition opportunities.

Ensign's strategy of acquiring underperforming assets and unlocking operational upside from those facilities has helped it outperform in the historically challenging skilled nursing facility operating and reimbursement environment, according to the note.

Oppenheimer maintained the company's stock rating at outperform, with a price target of $210.

Price: 165.20, Change: -2.46, Percent Change: -1.46