DaVita Stock: A Deep Dive Into Analyst Perspectives (4 Ratings)

Throughout the last three months, 4 analysts have evaluated DaVita DVA, offering a diverse set of opinions from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $136.0, with a high estimate of $145.00 and a low estimate of $130.00. Marking an increase of 9.46%, the current average surpasses the previous average price target of $124.25.

Investigating Analyst Ratings: An Elaborate Study

The analysis of recent analyst actions sheds light on the perception of DaVita by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to DaVita. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of DaVita compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of DaVita's stock. This examination reveals shifts in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of DaVita's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on DaVita analyst ratings.

Discovering DaVita: A Closer Look

DaVita is the largest provider of dialysis services in the United States, boasting market share that eclipses 35% when measured by both patients and clinics. The firm operates over 3,000 facilities worldwide, mostly in the U.S., and treats over 240,000 patients globally each year. Government payers dominate U.S. dialysis reimbursement. DaVita receives about two thirds of U.S. sales at government (primarily Medicare) reimbursement rates, with the remainder coming from commercial insurers. However, while commercial insurers represented only about 10% of the U.S. patients treated, they represent nearly all of the profits generated by DaVita in the U.S. dialysis business.

Understanding the Numbers: DaVita's Finances

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Over the 3 months period, DaVita showcased positive performance, achieving a revenue growth rate of 7.85% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: DaVita's net margin is impressive, surpassing industry averages. With a net margin of 4.79%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): DaVita's ROE stands out, surpassing industry averages. With an impressive ROE of 13.36%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): DaVita's ROA excels beyond industry benchmarks, reaching 0.89%. This signifies efficient management of assets and strong financial health.

Debt Management: DaVita's debt-to-equity ratio stands notably higher than the industry average, reaching 10.53. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Significance of Analyst Ratings Explained

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.