Wells Fargo Upgrades Kindred Healthcare (KND) to Outperform; Expects To Mitigate Substantial Portion Of SNF Cuts

Wells Fargo upgraded Kindred Healthcare (NYSE: KND) from Market Perform to Outperform, price target range raised to $16.50-$20.00 from $12.00-14.00.

Wells analsyt says, "The company’s estimates for the negative impact from the SNF cuts are lower than our estimate and KND expects that it can mitigate a greater portion of those cuts than we had expected. The company believes that its increased scale from the recent RehabCare acquisition combined with higher operating synergies will be the primary factors in offsetting the rate cuts. Kindred’s 2012 EPS guidance of $1.65-1.85 is higher than our prior $1.21E. We have raised our 2012E EPS to $1.65. Increasing our 2011 estimate to $1.85 from $1.47."

For more ratings news on Kindred Healthcare click here and for the rating history of Kindred Healthcare click here.

Shares of Kindred Healthcare closed at $12.93 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Wells Fargo Upgrades FOX Corp. (FOXA) to Overweight
• Jefferies Upgrades Minerva Neurosciences (NERV) to Buy
• RBC Capital Upgrades LTC Properties (LTC) to Outperform