Jefferies Upgrades PT On DaVita To $101 (DVA)

Jefferies has upgraded its price target on DaVita DVA from $95 to $101 in a research report published today. In the report, Jefferies states, "Our $101 PT is based on a 5-year DCF analysis that assumes a WACC of 7.3% and a terminal EBITDA-MI multiple of 8.5x (in-line with historical trading range). While our estimates do not include DSI contribution, our valuation model does. Risks: Uncertainties stemming from the transition to Medicare's bundled payment system and potential commercial payor pricing pressure." In spite of raising its price target, Jefferies still has a Hold rating on DaVita's shares. In yesterday's trading, DaVita's shares were up by 1.23% to close the day at $89.17.