Jefferies Cuts Price Target on Skilled Healthcare (SKH), Weak Long-Term Outlook Visibility
Tweet
Share
E-mailGet Alerts SKH Hot Sheet
Price: $8.77 --0%
Rating Summary:
1 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
1 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
Jefferies is maintaining its Hold rating on shares of Skilled Healthcare Group (NYSE: SKH) while cutting its price target from $6 to $4.50.
The firm posted solid Q3 results with EPS topping expectations by $0.02, sales growth of 3.8 percent year over year, and as its quality mix rose 70.8 percent year over year.
Management reaffirmed its FY11 guidance of $865-$870 million in revenue, EBITDAR of $147-$150 million, EBITDA of $128-$131 million, and EPS of $1.07-$1.12. The company's Q4 guidance calls for revenue of $210-$215 million and EPS of $0.11-$0.16.
An analyst at Jefferies comments, "Unfortunately, investors are likely to remain on the sidelines until reimbursement visibility improves. While we believe an effective multi-year rate freeze, beginning in FY13, is the most probable scenario to arise out of deficit reduction legislation, we are concerned that SNF reimbursement could come under additional scrutiny. For that reason, we do not expect investor sentiment to improve near-term.
For more ratings news on Skilled Healthcare Group click here and for the rating history of Skilled Healthcare Group click here.
Shares of Skilled Healthcare Group closed at $3.78 yesterday.
The firm posted solid Q3 results with EPS topping expectations by $0.02, sales growth of 3.8 percent year over year, and as its quality mix rose 70.8 percent year over year.
Management reaffirmed its FY11 guidance of $865-$870 million in revenue, EBITDAR of $147-$150 million, EBITDA of $128-$131 million, and EPS of $1.07-$1.12. The company's Q4 guidance calls for revenue of $210-$215 million and EPS of $0.11-$0.16.
An analyst at Jefferies comments, "Unfortunately, investors are likely to remain on the sidelines until reimbursement visibility improves. While we believe an effective multi-year rate freeze, beginning in FY13, is the most probable scenario to arise out of deficit reduction legislation, we are concerned that SNF reimbursement could come under additional scrutiny. For that reason, we do not expect investor sentiment to improve near-term.
For more ratings news on Skilled Healthcare Group click here and for the rating history of Skilled Healthcare Group click here.
Shares of Skilled Healthcare Group closed at $3.78 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Cummins (CMI) PT Lowered to $675 at Jefferies
- Ferrovial SA (FER:SM) (FRRVF) Reiterated at Buy by UBS on Winning Bid For Tennessee Project
- Benchmark Reiterates Buy Rating on Rank One Computing (ROC)
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Jefferies & CoSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
