UBS Assumes DaVita (DVA) with a Buy

UBS analyst Andrew Mok assumes coverage on DaVita (NYSE: DVA) with a Buy rating (from Neutral) and a price target of $117.00, (from $106.00).

The analyst comments "We assume coverage of DVA with a Buy rating and $117 price target supported by a favorable risk-reward, which skews 2-to-1 to the upside. While most providers in our coverage are subject to negative earnings revisions in 2023, we have high conviction in DVA's ability to deliver $200-300 mn of OI growth next year and model $1,808 mn of EBIT (+1% vs Street) supported by strong visibility into cost savings initiatives. We see 30% upside to current levels from EPS growth alone (~50% EPS growth next two years) and think that passage of H.R.8594 (likely in our view) could catalyze a multiple re-rating later this year. Combined with >$1bn of share repurchase, our 2024 EPS of $11.59 sits 7% above FactSet Consensus."

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 $89.64 yesterday.

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