UPDATE: DA Davidson Reduces PT to $6 on Skilled Healthcare Group on Lower Valuation

DA Davidson reiterates its Neutral rating on Skilled Healthcare Group SKH DA Davidson comments, "Despite the stock's apparent low relative valuation, we lack confidence to accord the shares either a favorable or unfavorable recommendation because of the challenging environment for skilled nursing facility operators due to reimbursement rate uncertainties, as well as the company's highly leveraged, albeit recently improved, balance sheet." SKH closed at $5.67 on Thursday.