Is Wall Street Bullish or Bearish on DaVita Stock?

Based in Denver, Colorado, DaVita Inc. (DVA) is a prominent U.S. provider of dialysis services for patients with chronic kidney failure or end-stage renal disease (ESRD). Valued at $13.1 billion by market cap, the company also operates a diverse ancillary services segment, offering international dialysis services, pharmacy and infusion therapy, disease management, vascular access, ESRD clinical research, and physician support.

Shares of the kidney specialist have exceeded the broader market over the past year. While DVA stock has surged 69.7% over this time frame, the S&P 500 Index ($SPX) has rallied by 30.4%. In 2024 alone, the stock rose 53.1%, compared to SPX’s 23.1% return on a YTD basis.

Narrowing the focus, DVA has also outperformed the SPDR S&P Health Care Services ETF (XHS), which has gained 9.4% over the past year and 3% in 2024.

On Oct. 29, DVA reported its Q3 earnings, and its stock dropped 10.8% in the following trading session. Its lower-than-expected profitability of $2.59 per share missed the consensus estimate of $2.72. While revenue gains were driven by higher reimbursement rates and increased inpatient dialysis treatments, they were overshadowed by the profit shortfall.

For the current fiscal year, ending in December, analysts expect DVA’s EPS to rise 14.6% year over year to $9.71. The company’s earnings surprise history is mixed, exceeding the consensus estimate in three of the last four quarters, missing on another occasion.

However, DaVita stock has a consensus “Hold” rating overall. Out of eight analysts covering the stock, one recommends a "Strong Buy," six suggest a "Hold," and one advises a "Moderate Sell."

The configuration has been stable over the past months.

On Nov. 4, Barclays PLC (BCS) analyst Andrew Mok, CFA, reaffirmed a “Hold” rating on DaVita with a price target of $164.

DVA’s mean price target of $163 represents a 1.7% premium to current market prices. The Street-high target of $186 represents a 16% upside potential.

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On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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