UPDATE: Morgan Keegan Lowers PT on Sun Healthcare Group to $11

Morgan Keegan is out with its report today on Sun Healthcare Group SUNH, lowering its PT from $17 to $11. In a note to clients, Morgan Keegan writes, "At our target 12x P/E multiple and 7x EV/EBITDAR multiple, our revised price target is $11. We conclude that Sun shares are undervalued, though we expect nursing home shares to have limited upside until the Medicare uncertainty is resolved." Shares of SUNH closed Friday at $8.25, down 3.96% from Thursday's close.