UPDATE: Morgan Keegan Downgrades Sun Healthcare Group to Market Perform

Morgan Keegan is out with its report today on Sun Healthcare Group SUNH, downgrading SUNH from Outperform to Market Perform. In its report, Morgan Keegan writes, "We are lowering our rating on Sun Healthcare Group from Outperform to Market Perform following Friday's news that fiscal (September) 2012 Medicare payments to nursing homes will be cut by an average of 11.1%." Morgan Keegan lowers its PT from $11 to $4. Shares of SUNH closed Friday at $7.00, up 1.01% from Thursday's close.