DaVita Inc. Shares Struggle Amid Market Rally
DaVita Inc. (DVA), based in Denver, Colorado, specializes in kidney dialysis services for patients with chronic kidney failure. With a market capitalization of $11 billion, the company operates multiple kidney dialysis centers and offers related lab services in outpatient settings.
Over the past year, DaVita’s stock has lagged behind the broader market. DVA has increased by 5% during this period, while the S&P 500 Index ($SPX) has surged nearly 11.9%. Year-to-date in 2025, DVA is down 3.4%, whereas the SPX has seen a slight decline.
In comparison, DVA’s performance appears less severe next to the SPDR S&P Health Care Services ETF (XHS), which has appreciated approximately 9.9% over the last year. YTD, the ETF’s gains of 9.7% clearly outstrip DVA’s losses.
Some of DVA’s recent struggles can be traced back to a ransomware attack on April 12, which unsettled investors. The company initiated containment measures to mitigate the impact, but certain operations have been disrupted, and recovery efforts are still underway.
Following the Q1 results on May 12, DVA’s shares saw a slight uptick. The company reported revenues of $3.2 billion, representing a 5% increase year over year. However, adjusted earnings per share (EPS) fell by 11.5% from the previous year, landing at $2.
For the current fiscal year ending in December, analysts anticipate an 11.2% rise in DVA’s EPS, projecting it will reach $10.76 on a diluted basis. The company has had a mixed track record regarding earnings surprises, outperforming estimates in three out of the last four quarters while missing projections once.
Among eight analysts covering DVA, the consensus recommendation is a “Hold.” This comprises one “Strong Buy,” six “Holds,” and one “Moderate Sell.”
This recommendation trend has remained stable over the past three months. On April 10, Andrew Mok, CFA, an analyst at Barclays PLC (BCS), reaffirmed a “Hold” rating on DVA and set a price target of $169, suggesting a potential upside of 17% from current levels.
The average price target of $169.14 indicates a 17.1% premium to DVA’s current pricing. Notably, the highest projected price target of $186 suggests a significant upside potential of 28.8%.
On the date of publication, Neha Panjwani did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are intended solely for informational purposes. For more details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
