J.P. Morgan Slashes Estimates For Kindred Healthcare (KND)

J.P. Morgan has updated its model to conform its Q1, 2010 earnings results for Kindred Healthcare Inc. KND. The research firm has moved Q1, 2010 results to $0.44 from the prior GAAP result of $0.38. The 2010 estimates now stand at $1.34. 2011 EPS estimate for Kindred Healthcare (KND) has also been slashed by $0.05. The stock is currently trading at 6.2x of 2010 estimate. The company has been given a ‘neutral’ rating with a price target of $18, which is based on 6x adjusted EB/EBITDAR multiple to 2011 EBIITDAR estimate. The potential risk for the company includes deterioration in state tax revenue resulting in further Medicaid pressure.