DaVita upgrades to Moderate Buy as Wall Street eyes $201 price target
Shares of DaVita Inc. have surged following strong first-quarter 2026 results, prompting a shift in consensus ratings and higher price targets from major firms including TD Cowen.
Wall Street analysts have revised their consensus rating for DaVita Inc. to a "Moderate Buy," marking a shift from a "Hold" rating observed a month prior. The upgrade follows the release of the company’s first-quarter 2026 earnings on May 5, which demonstrated robust operational performance and improved cost control. The consensus now reflects three "Strong Buy" ratings, four "Hold" ratings, and one "Moderate Sell" among the eight analysts covering the stock.
DaVita reported revenue of $3.42 billion for the first quarter, representing a 6% increase year-on-year. Adjusted earnings per share jumped 43.5% to $2.87, comfortably exceeding analyst estimates. The results were driven by improving dialysis treatment volumes and better operational trends in non-acquired dialysis treatments. Following the earnings release, DaVita’s shares rose 23.5% in the subsequent trading session.
TD Cowen recently increased its price target for DaVita to $201 from $144 on May 11, citing the stronger-than-expected quarterly results. While the firm maintained a "Hold" rating, the revision underscores confidence in the company’s trajectory. The broader consensus mean price target currently stands at $190.50, with a high of $235, suggesting potential upside from current trading levels.
The stock has significantly outpaced the broader market over the past year. DaVita shares have risen 38.9%, compared to a 26.6% gain for the S&P 500 Index. On a year-to-date basis, DaVita is up 76.5%, while the S&P 500 has rallied 8.1%. The stock has also outperformed the SPDR S&P Health Care Services ETF, which gained 14.8% over the same period.
Looking ahead, analysts expect DaVita’s diluted EPS to grow 39.8% to $15.07 for the current fiscal year ending in December. The company has a mixed earnings surprise history, having beaten consensus estimates in three of the last four quarters. As of the latest data, the stock trades above the consensus mean target, reflecting the market’s positive reception of its recent financial performance.
