UPDATE: Morgan Keegan Raises Price Target on Sun Healthcare to $3.90

According to Morgan Keegan, Sun Healthcare SUNH price target is raised to $3.90. Morgan Keegan said that Sun Healthcare Group modified its term loan, paying down $50 million and increasing the interest rate from 7.5% to 8.75%. In return, the loan covenants have been relaxed. “We are lowering our 2012 and 2013 EPS estimates by $0.02 each.” Sun Healthcare closed yesterday at $3.45.