DaVita’s Resilience Amidst Challenges: Hold Rating Maintained Despite Q1 Setbacks and Adjusted Price Target

Analyst Ryan Langston from TD Cowen maintained a Hold rating on DaVita (DVA – Research Report) and decreased the price target to $157.00 from $165.00.

Ryan Langston has given his Hold rating due to a combination of factors affecting DaVita’s performance. The company faced challenges in the first quarter of 2025, missing adjusted EBIT expectations due to external factors such as a severe flu season, adverse weather conditions, and a cyber incident. These issues led to a reduction in volume expectations and a slight decrease in treatment volumes, impacting financial projections.
Despite these setbacks, DaVita managed to maintain its full-year EBIT, EPS, and FCF ranges, and the company expects a positive contribution from the inclusion of oral phosphate binders. However, the cyber incident caused a temporary dip in admissions, and potential future impacts from the expiration of enhanced subsidies could pose additional financial challenges. Consequently, the price target was adjusted downward to $157, reflecting a cautious outlook while acknowledging the company’s resilience amidst these difficulties.