Dim Revenue Growth And Clouded Reimbursement Pull Back Kindred, Says Jefferies (KND)

Analysts at Jefferies & Company, Inc. gave Hold ratings to shares of Kindred Healthcare KND, lowering their Price Target to $15 based on a target multiple of 6x, from $18 previously. They forecast limited upside opportunities for the shares owing to seasonally weak Q3 and lowered EBITDA. The company had earlier reported a Q2 EPS of $0.41, ahead of $0.36 consensus, on revenues of $1.08 billion growing 1% and 3% in the hospital (LTCH) and nursing (SNF) divisions. However, the overall revenue merely grew 0.8% Y/Y. Although the Senate cloture vote for FMAP extension improved reimbursements for SNF, the analysts are wary for LTCH.