DaVita headline risk from FTC probe ‘overblown,’ says TD Cowen

TD Cowen noted that Politico reported that the Federal Trade Commission is investigating DaVita (DVA) and Fresenius Medical Care (FMS), the two largest dialysis providers in the U.S., over allegations they illegally thwart smaller competitors. Despite the headlines, the firm sees little near to intermediate term risk, although it recognizes “the fundamental overhang a duopoly attracts in relation to antitrust practices.” Still, the firm believes any headline risk is “overblown” as it believes any potential impact would be “years away at the earliest.” TD Cowen has a Hold rating on DaVita shares.