Shares of Irvine-based Sun Healthcare Group Inc., an operator of nursing homes, rose Tuesday after an analyst upgraded the company.
Sun shares closed up 7% on a down day on Wall Street, with a market value of $375 million.
Analyst Jason Gurda of Leerink Swann & Co., a Boston-based investment bank, raised his rating on Sun to “outperform” from “market perform.”
Gurda, in a report, said he believed that Sun’s shares have been oversold on Medicare reimbursement fears and recent news from Skilled Healthcare Group Inc., a Foothill Ranch-based Sun competitor.
Last week, Skilled said it plans to restate three years of financial results to correct accounting mistakes by a former employee.
Gurda also wrote that he saw Sun continuing to grow its earnings despite Medicare rate cuts.
