NEW YORK, May 1 (Reuters) - The recent whipsaw of Kindred Healthcare shares and the uncertainty surrounding Medicare rate cuts should not deter investors, according to a report in the May 2 edition of Barron's.
Instead, they should keep an eye on Kindred's strong points which includes a pending $1.3 billion acquisition of rival RehabCare Group, the report said.
Kindred Healthcare Chief Executive Paul Diaz told Barron's the transaction will create the largest post-acute-care hospital company in the U.S.
Some bullish analysts think the stock could move into the mid-$30s within a year, the report said.
Shares of Kindred closed at $25.22 on Friday.
(Reporting by Jennifer Saba; Editing by Diane Craft)
((Jennifer.Saba@thomsonreuters.com; 1 646 223-6173; Reuters Messaging: jennifer.saba.reuters.com@reuters.com)) Keywords: KINDREDHEALTHCARE/ (Visit http://blogs.reuters.com/mediafile/ for more coverage at the Reuters MediaFile blog) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Instead, they should keep an eye on Kindred's strong points which includes a pending $1.3 billion acquisition of rival RehabCare Group, the report said.
Kindred Healthcare Chief Executive Paul Diaz told Barron's the transaction will create the largest post-acute-care hospital company in the U.S.
Some bullish analysts think the stock could move into the mid-$30s within a year, the report said.
Shares of Kindred closed at $25.22 on Friday.
(Reporting by Jennifer Saba; Editing by Diane Craft)
((Jennifer.Saba@thomsonreuters.com; 1 646 223-6173; Reuters Messaging: jennifer.saba.reuters.com@reuters.com)) Keywords: KINDREDHEALTHCARE/ (Visit http://blogs.reuters.com/mediafile/ for more coverage at the Reuters MediaFile blog) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.