Cautious Outlook on DaVita Amid Volume Recovery Challenges and Cyberattack Impact

Bank of America Securities analyst Joanna Gajuk reiterated a Sell rating on DaVita (DVA – Research Report) today and set a price target of $145.00.

Joanna Gajuk’s rating is based on several challenges DaVita is facing, which impact its long-term growth prospects. Despite a stronger-than-expected first quarter, DaVita is experiencing difficulties with volume recovery, which is crucial for sustainable operating income growth. The company has been affected by a severe flu season and a cyberattack, both of which have contributed to lower treatment volumes and a reduction in the treatment guidance for fiscal year 2025.
Moreover, while DaVita has seen some financial benefits from the transition of phosphate binders into the Medicare bundle, the overall visibility into volume recovery remains low. This uncertainty, combined with indirect costs from the cyberattack and the impact of missed treatments, leads to a cautious outlook. As a result, Joanna Gajuk maintains a Sell rating, reflecting concerns about DaVita’s ability to achieve the necessary volume growth to support long-term financial performance.