J.P. Morgan Upping Estimates On Sun Healthcare Group (SUNH)

J.P.Morgan Chase & Co. wrote in a research report that it is upping estimates on Sun Healthcare Group, Inc.

. It has a $10 price target and a Neutral rating. In the research report, J.P.Morgan Chase & Co. writes, "We are updating our EPS estimates to reflect the company’s recent secondary offering of 30.7mm shares for $224.8mm after fees and expenses. We have assumed the net proceeds are to be used to retire part of the term loans as SUNH looks to reduce its leverage ahead of the proposed separation of the operating business and the operating assets. In addition we are establishing a Dec 2011 price target of $10 (our prior Dec 2010 price target was also $10), which is on a pre-separation basis." Shares of Sun Healthcare Group closed at $8.10 yesterday.