DaVita price target raised to $139 from $126 at BofA

BofA raised the firm’s price target on DaVita to $139 from $126 and keeps an Underperform rating on the shares. Adjusted operating income was 9% above consensus on 1% better revenue and 110 basis points of better margins, while the company raised the low end of adjusted OI guidance as pricing in the quarter came in better than internal expectations, though it does not assume similar levels of outperformance over the year, the analyst tells investors. The firm is raising revenue and EBITDA estimates, but keeps the stock at Underperform as it waits to see more proof points on volume improvement.