Wachovia Upgrades Kindred Healthcare (KND) to Market Perform; Negative Concerns Now Reflected In The Stock

June 17, 2009 7:52 AM EDT

Wachovia upgrades Kindred Healthcare (NYSE: KND) from Underperform to Market Perform. Valuation Range: $10 to $13.

Wachovia analyst says, "Shares of KND have declined about 31% since April 14, 2009. Compared to the 8.4% increase in the S&P500 over the same period, we believe most of the negative impact from potential reimbursement cuts into skilled nursing facilities (SNF) in 2010 and the reduction to long term acute care (LTAC) pricing for the remainder of 2009 are reflected in the recent decline in the stock. We have reduced our 2009 estimate to $1.20 from $1.37 and our 2010 estimate to $1.19 from $1.31. We have lowered our estimates to take into account cuts to long term acute care hospitals (LTAC) beginning 6/1. We believe the stock already reflects the impact from these cuts...Regulatory environment remains challenging for the industry."

To see more analyst ratings on KND Click Here.

Kindred Healthcare, Inc. operates as a healthcare services company in the United States. It operates in three divisions: Hospital, Health Services, and Rehabilitation.

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