Kindred Healthcare set to become a powerhouse - Barron's

NEW YORK Sun May 1, 2011 5:19pm EDT

NEW YORK May 1 (Reuters) - The recent whipsaw of Kindred Healthcare (KND.N) 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 RHB.N, 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)

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