Citi Reiterates a 'Buy' on DaVita Inc (DVA); Dialysis Final Rule Better than Proposed, but Not Perfect
DVA Hot Sheet
Rating Summary:6 Buy, 4 Hold, 0 Sell
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Today's Overall Ratings:
Up: 13 | Down: 8 | New: 19
Citi reiterates a 'Buy' rating on DaVita Inc (NYSE: DVA), raises price target from $72 to $75.
Citi analyst says, "ESRD final rule was better than the 9/09 Proposed rule (namely the under-funded oral rx was delayed), but not perfect, as CMS finalized a 3.1% transition payment adjustment that we had hoped would be delayed or reduced (prompting 2011 EPS reductions vs our model). The increase in the unadjusted base rate from $198 to $229 materially reduces coding uncertainty and downside risk. Our thesis that DVA will materially grow operating margins under the bundled payment system (begins 1/1/11) is intact and we reiterate our rating."
To see all the upgrades/downgrades on shares of DVA, visit our Analyst Ratings page.
DaVita Inc. (DaVita) is a provider of dialysis services in the United States for patients suffering from chronic kidney failure, also known as end stage renal disease (ESRD).
Citi analyst says, "ESRD final rule was better than the 9/09 Proposed rule (namely the under-funded oral rx was delayed), but not perfect, as CMS finalized a 3.1% transition payment adjustment that we had hoped would be delayed or reduced (prompting 2011 EPS reductions vs our model). The increase in the unadjusted base rate from $198 to $229 materially reduces coding uncertainty and downside risk. Our thesis that DVA will materially grow operating margins under the bundled payment system (begins 1/1/11) is intact and we reiterate our rating."
To see all the upgrades/downgrades on shares of DVA, visit our Analyst Ratings page.
DaVita Inc. (DaVita) is a provider of dialysis services in the United States for patients suffering from chronic kidney failure, also known as end stage renal disease (ESRD).
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