Jefferies Reiterates Buy Rating on Skilled Healthcare Group (SKH)

Jefferies & Company is out with a research report this morning, where it reiterates its Buy rating on Skilled Healthcare Group

; it has a $3.50 price target on the stock. The Jefferies analysts cited the company’s recent announcement that its Humboldt County court proceedings, which were scheduled to begin today, have been post posted until Thursday (Sept 2nd). Meanwhile, settlement discussions continue between SKH and the plaintiffs. The analysts said that they believe the judge's decision to postpone these court proceedings is a significant one. Given the brief nature of the delay, it could be a signal that SKH and the plaintiffs are close to arriving at a settlement. They added that, “From our perspective, one should assume that SKH's Board will only agree to a settlement that keeps the company "sufficiently" viable. Remember, the largest shareholder, Onex Corporation, owns a majority of SKH's common stock and has lead director representation on the Board, that gives Onex big say on what gets settled and what doesn't.”