Analysts’ estimates and recommendations
As discussed previously, analysts expect DaVita (DVA) to post revenue of $2.877 billion, adjusted net income of ~$175.97 million, and non-GAAP EPS of ~$0.97 in Q2 2018. Of the ten analysts tracking DaVita, five recommend “strong buy,” four recommend “hold,” and one recommends “sell.”
Their consensus rating of 2.1 for the stock represents a “buy” for long-term growth investors and a moderate “buy” for value investors. The chart below shows analysts’ recommendations for DaVita stock over the last 12 months.
DaVita stock has risen ~6.6% over the last 12 months but has fallen ~3.4% year-to-date. Analysts’ target price of $80.61 for the stock implies a ~15.5% upside to its July 30 price of $69.81.
DaVita’s forward PE and EV[1.enterprise value]-to-EBITDA multiples are 15.4x and 10.3x, respectively, while the industry averages are 17.0x and 9.2x. The iShares Global Healthcare ETF (IXJ) invests 0.2% of its holdings in DaVita, 0.2% in Perrigo (PRGO), 4.4% in Pfizer (PFE), and 2.3% in Abbott Laboratories (ABT).