DaVita Inc. (DVA) is a leading healthcare provider specializing in kidney care services, including dialysis treatments for patients with chronic kidney failure. Headquartered in Denver, Colorado, it operates outpatient centers worldwide. The company has a market cap of $9.94 billion.

DaVita’s stock has been under pressure over the past year due to rising costs, exacerbated by a ransomware attack that led to a data breach that affected 2.7 million people. Over the past 52 weeks, the stock has fallen 18.2%. However, after reporting strong quarterly results, it is up 24% year-to-date (YTD). DaVita shares had hit a 52-week low of $101 on Jan. 14, but are up 39.4% from that level.

Meanwhile, the broader S&P 500 ($SPX) has gained 14% and 1.3% over the same periods, respectively, indicating that while stocks have underperformed the broader market over the past year, they have outperformed last year. Next, we compare the stock to its own sector. The State Street Health Care Select Sector SPDR ETF ( XLV ) is up 7.2% over the past 52 weeks and 1.9% YTD, showing the same trend.

On February 2, DaVita reported its fourth quarter and fiscal year 2025 results. As the results were better than expected, the company’s shares rose 21.2% intraday on February 3. Its fourth-quarter revenue rose 9.9% year-over-year (YOY) to $3.62 billion, which is driven by 9% growth in dialysis patient service revenue to $3.4 billion. With the expiration of the Affordable Care Act, DaVita expects some headwinds this year and next. However, this is expected to be offset by the elimination of the impact of cyber incidents observed in 2025.

For the current quarter, Wall Street analysts expect DaVita’s EPS to rise 20.5% year-over-year to $2.41 on a diluted basis. EPS is expected to rise 31.4% annually to $14.16 in fiscal 2026, followed by a 19.4% improvement to $16.90 in fiscal 2027. The company has a strong track record of topping consensus estimates in three of the trailing four quarters.

Among the eight Wall Street analysts covering DaVita shares, the consensus is a “Hold”. This is based on two ‘Strong Buy’ ratings, five ‘Hold’ ratings and one ‘Moderate Sell’ rating. The rating setup has turned slightly more bullish than a month ago, with the number of “Strong Buy” ratings increasing from one to two.

Following DaVita’s Q4 results, analysts at UBS maintained a “Buy” rating and a $190 price target on the stock. The company is optimistic of achieving long-term growth of 2% in dialysis volume by improving patient outcomes and reducing mortality. Key strategies include increasing the use of GLP-1 medications, reducing missed treatments, and deploying new, proven technologies.

DaVita’s average price target of $151 indicates a 7.2% upside from current market prices. Additionally, the $190 price target given by UBS Street-high implies a potential upside of 34.9%.

As of the date of publication, Anushka Dutta had no positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published on Barchart.com