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