SKH Earnings Outlook Improved Dramatically, Jefferies Reports

Skilled Healthcare Group, Inc. SKH earnings outlook has improved dramatically with the release of its FY11 guidance last week, Jefferies reports. “Additional upside could easily come from improving economic conditions, unannounced acquisitions and any attempt by management to monetize SKH's owned real estate portfolio,” Jefferies writes. “Upgrading to Buy; PT $13 (from $5.50).” Jefferies added that last week, SKH raised its FY10 adjusted EBITDAR and EPS guidance to $138.9-$140.7MM (from $135-$139MM) and $1.01-$1.04 (from $0.92-$0.97), respectively. “It also issued initial FY11 EBITDAR and EPS guidance of $156.2-$163.5MM and $1.22-$1.32 (vs. consensus of $0.90), respectively.” Skilled Healthcare Group is currently trading at $11.29.