Skilled Healthcare (NYSE:SKH) Guidance Should Improve for 2011

Barclays (NYSE:BCS) says Skilled Healthcare Group (NYSE:SKH) guidance should be revealed as better-than-expected for 2011.

"We believe it is increasingly likely that SKH will provide better-than-expected guidance for 2011, either in advance of its presentation at an investor conference in early January or in conjunction with the company's 4Q10 results. We highlight that the stock has traded higher this week on the news that HCP was going to buy ManorCare's real estate (we do believe SKH should get some recognition for the inherent value of their real estate, noting that they own 74%) and we believe the press release issued last night by Kindred Healthcare (NYSE: KND) will be another positive catalyst for the shares of SKH, given that KND's guidance implies that nursing homes which are focused on higher acuity patients will receive a substantial benefit from RUG-IV," said Barclays.

Barclays maintains an "Equalweight" on Skilled Healthcare Group, which closed Thursday at $8.47, up $0.55, or 6.94 percent. Barclays has a price target on them of $6.