UPDATE: Jefferies Lowers PT to $11 on Kindred Healthcare

Jefferies cuts its target $2 to $11 on Hold-rated Kindred Healthcare (NYSE: KND) as it believes that, while the company's strategy is sound, it is currently overshadowed.

Jefferies says, "The Department of Defense announced on Friday after market that it awarded UNH the TRICARE West Contract. We estimate the win will only accrete annual EPS by a couple pennies once it begins in 2Q13. However, this adds to a series of other small wins in Medicaid, and strengthens its government relations."

KND closed at $55.59 a share on Friday.

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