UBS Reiterates a 'Buy' on DaVita (DVA); Revising EPS Post QIP
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Price: $173.82 -0.81%
Rating Summary:
8 Buy, 12 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
8 Buy, 12 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UBS reiterates a 'Buy' on DaVita (NYSE: DVA), PT increased from $95 to $100.
UBS analyst says, "CMS proposal incl retiring 10g/dL lower band from QIP, which coupled w/prior week’s FDA label change is likely to drive EPO dose declines for DVA and industry (UBS biotech analyst Matt Roden see potential for “new” mean Hb level of 10-10.5 g/dL vs. his 11.1 est for 2011). Additionally, CMS also proposes 2.1% FY’12 bundle pymt increase (slightly ahead of our 1.6% est.) including 1.8% rate update and removal of transition adj (+50-75 bps), w/other items a slight headwind."
"Raising UBS estimates to account for expected decline in EPO dose - We conservatively estimates moderating dose through 2H’11 and thus raise our EPS estimate by $0.10 to $4.80 here. By ‘12, 4,000 unit dose avg. would increase EPS by ~$0.50, however we increase our FY’12/’13 estimates by $0.25/$0.35 to $6.25/$7.25, respectively, w/further upside conservatively offset by assumed increased SG&A/International invest."
For more ratings news on DaVita click here and for the rating history of DaVita click here.
Shares of DaVita closed at $87.20 yesterday.
UBS analyst says, "CMS proposal incl retiring 10g/dL lower band from QIP, which coupled w/prior week’s FDA label change is likely to drive EPO dose declines for DVA and industry (UBS biotech analyst Matt Roden see potential for “new” mean Hb level of 10-10.5 g/dL vs. his 11.1 est for 2011). Additionally, CMS also proposes 2.1% FY’12 bundle pymt increase (slightly ahead of our 1.6% est.) including 1.8% rate update and removal of transition adj (+50-75 bps), w/other items a slight headwind."
"Raising UBS estimates to account for expected decline in EPO dose - We conservatively estimates moderating dose through 2H’11 and thus raise our EPS estimate by $0.10 to $4.80 here. By ‘12, 4,000 unit dose avg. would increase EPS by ~$0.50, however we increase our FY’12/’13 estimates by $0.25/$0.35 to $6.25/$7.25, respectively, w/further upside conservatively offset by assumed increased SG&A/International invest."
For more ratings news on DaVita click here and for the rating history of DaVita click here.
Shares of DaVita closed at $87.20 yesterday.
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