DA Davidson Downgrades Skilled Healthcare Group (SKH) to Neutral; Valuation Call

DA Davidson downgraded Skilled Healthcare Group (NYSE: SKH) from Buy to Neutral with a price target of $8.00.

Analyst, James L. Bellessa, said, "After a sharp contraction in share price in August and September of 2011 (in reaction to the federal government’s announcement that overall Medicare reimbursement rates were to be cut by an average 11.1% starting on October 1, 2011), shares of SKH have risen 92% in the past six months and 46% year-to-date. With that said, the current price remains nearly 40% lower than one year ago and 50% below its 2011 peak (which closely coincided with management’s now-withdrawn decision to engage an investment banking firm to assess strategic alternatives for SKH, including the possible sale of the company)."

For an analyst ratings summary and ratings history on Skilled Healthcare Group click here. For more ratings news on Skilled Healthcare Group click here.

Shares of Skilled Healthcare Group closed at $7.80 yesterday.

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