Bank Of America Raises Estimates On Kindred Healthcare

According to Bank of America, Kindred Healthcare KND announced that it has completed its previously announced acquisition of RehabCare. Bank of America said that it is raising its 2011/12/13 ests to $2.16/$2.82/$3.18 from $1.84/$1.88/$2.07 to reflect the RHB acquisition. “Not only is the deal immediately accretive, but we think that synergies over the next couple of years combined with debt paydown, should help to lay the groundwork for growth over the next couple of years. However, significant reimbursement headwinds (especially the proposed SNF Medicare rate cut of 11%) somewhat limit the long-term upside, leaving us with a Neutral rating.” Kindred Healthcare closed yesterday at $25.06.