Morgan Keegan Maintains Market Perform Sun Healthcare Group

Morgan Keegan is out with its report today on Sun Healthcare Group SUNH, maintaining Market Perform. In its report, Morgan Keegan writes, "We believe that Sun can continue to improve its revenues and margins by focusing on high-acuity short-stay patients, augmented by selective acquisitions, particular of hospice operators. Our Market Perform rating is based on the negative impact of an 11.1% Medicare rate cut scheduled for October 1." At the time of posting, shares of SUNH were trading at $3.50, up 4.48% from Monday's close.