Markets & Finance

Jefferies Downgrades Genesis Healthcare


Jefferies downgrades Genesis Healthcare (GHCI) and Kindred Healthcare (KND) to hold from buy.

Analyst Frank Morgan believes there is an increasing likelihood of removal of Medicare add-on payments (aproximately $30 per Medicare day) may be part of CMS's fiscal 2006 proposed rule. He says the rule will be issued in late April/early May, and will be subject to a 60-day comment period.

While the industry is expected to lobby against the cut, he thinks uncertainty should make stock performance difficult through the summer. He believes it is highly unlikely we'll see any share price appreciation from Genesis Healthcare and Kindred Healthcare until there is better visibility on the issue.

Morgan cuts Genesis's $45 target to $36 and Kindred's $36 target to $33.


Hollywood Goes YouTube
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

 
blog comments powered by Disqus