Nomura Securities Maintains a 'Neutral' on DaVita (DVA); Q4 Review
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Price: $126.11 -1.2%
Rating Summary:
7 Buy, 13 Hold, 1 Sell
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Today's Overall Ratings:
Up: 5 | Down: 3 | New: 5
Rating Summary:
7 Buy, 13 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 5 | Down: 3 | New: 5
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Nomura Securities maintains a 'Neutral' on DaVita (NYSE: DVA) price target of $81.40.
Analyst, Martin Brunninger, said, "Revenues slightly ahead of consensus; net income and EPS in line. 2012 outlook: operating income $1,200m-$1,300m, operating cash flow expectations revised downwards slightly to $950m-$1,020m. Management sees solid growth ahead. Q4 revenue USD 1,862m (Nomura USD 1,810m, cons. USD 1,846m). Net Income: USD 148m (Nomura USD 154m, cons. USD 157m). EPS: USD 1.59/share (Nomura USD 1.56/share, cons. USD 1.57/share). 2012 Outlook: Operating income guidance for 2012 is still expected to be in the range of $1,200m-$1,300m. Expectations of operating cash flows have been downgraded to $950m-$1,050m from the $1,020m- $1,100m announced in Q3."
"We see a risk of increasing medical costs i.e., pharmaceuticals and changing prescribing behaviour, but also lowering of Medicare reimbursement. We expect an update on the details of ACO opportunities in the next couple of months. We see little impact on shifting a proportion of DaVita’s 10% commercial patients from unbundled to bundled payment."
For an analyst ratings summary and ratings history on DaVita click here. For more ratings news on DaVita click here.
Shares of DaVita closed at $85.48 yesterday.
Analyst, Martin Brunninger, said, "Revenues slightly ahead of consensus; net income and EPS in line. 2012 outlook: operating income $1,200m-$1,300m, operating cash flow expectations revised downwards slightly to $950m-$1,020m. Management sees solid growth ahead. Q4 revenue USD 1,862m (Nomura USD 1,810m, cons. USD 1,846m). Net Income: USD 148m (Nomura USD 154m, cons. USD 157m). EPS: USD 1.59/share (Nomura USD 1.56/share, cons. USD 1.57/share). 2012 Outlook: Operating income guidance for 2012 is still expected to be in the range of $1,200m-$1,300m. Expectations of operating cash flows have been downgraded to $950m-$1,050m from the $1,020m- $1,100m announced in Q3."
"We see a risk of increasing medical costs i.e., pharmaceuticals and changing prescribing behaviour, but also lowering of Medicare reimbursement. We expect an update on the details of ACO opportunities in the next couple of months. We see little impact on shifting a proportion of DaVita’s 10% commercial patients from unbundled to bundled payment."
For an analyst ratings summary and ratings history on DaVita click here. For more ratings news on DaVita click here.
Shares of DaVita closed at $85.48 yesterday.
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