Goldman Reiterating Buy On DaVita Inc. (DVA)

Goldman Sachs is reiterating its Buy rating on shares of DaVita Inc. DVA. It has a $90 price target on shares. In a note to clients, Goldman writes, "DaVita remains our top Buy-rated name within Facilities coverage. DVA is uniquely well positioned among healthcare stocks to deliver stable 4% organic volume growth. Furthermore, unlike peers struggling to stabilize margins as revenues remain under pressure, an underappreciated opportunity to trim costs under bundled Medicare payments drives our forecast of 110 bp EBIT margin expansion from 2010 to 2012. Recent data points imply cost cutting in 2011 could exceed our initial estimate. We expect first-time 2011 guidance in conjunction with 4Q results on February 10th. Our $90 price target implies 22% upside." Shares of DVA lost $1.03 yesterday to close at $74.28, a loss of 1.37%.