UPDATE: Bank of America Merrill Lynch Lowers PO on Kindred Healthcare to $15

Bank of America Merrill Lynch is out with its report today on Kindred Healthcare KND, lowering its PO to $15 from $20. In its report, Bank of America Merrill Lynch writes, "Our $15 PO represents 6.4x our 2012 EBITDAR estimate of $907m. The 6.4x would be in the middle of the historical range of the stock, a level we think is appropriate given that the RehabCare transaction synergies are offset by Medicare rate cuts." Bank of America Merrill Lynch maintains Neutral on KND. Shares of KND closed Monday at $11.29.