NEW YORK (AP) -- Shares of Kindred Healthcare Inc. jumped to an annual high Wednesday as Wall Street reacted positively to the company's investor day.
THE SPARK: Kindred, which expects about $6.4 billion in annual revenue, said it is working to integrate its services, cut costs, and improve its business.
THE BIG PICTURE: Kindred is based in Louisville, Ky., and it operates more than 200 nursing and rehabilitation centers, more than 100 long-term acute care hospitals, hospice locations, home health locations, and inpatient rehabilitation units. Its RehabCare unit provides services to 1,700 other facilities.
THE ANALYSIS: Susquehanna Financial Group analyst Chris Rigg said the company is expecting sold cash flow in 2013, and its cash flows should improve over the next few years as a result of cost cuts and business restructuring. He said the shares should trade higher on those factors and the company's plans to eliminate underperforming nursing center assets.
Rigg upgraded the shares to "Positive" from "Neutral" and raised his price target to $17 per share from $12.
SHARE ACTION: Kindred stock gained $1.13, or 9.1 percent, to $13.60 on Wednesday. During the session, the shares touched $13.84, their highest price since August 2011.