DVA - BoA downgrades DaVita to underperform cuts price target

BofA Securities analyst Kevin Fischbeck has downgraded shares of DaVita (DVA) to underperform from neutral and is cutting his price target from $127 to $118.He writes that the company is not as "levered" as its competitors in terms of being prepared for an expected modest increase in patients as COVID-19 begins to subside.Dialysis has been more resilient during the pandemic than other health care industries, he notes.Although Fischbeck says that health care utilization should bounce back in the second half of the year, dialysis will not benefit as much from this rebound.Also, DaVita has guided 2021 operating income just below expectations as same-store volume is projected to decline 1%-2% year-over-year because of higher mortality of dialysis patients during the pandemic, Fischbeck adds.DaVita shares are down 2.4% to $108.15 in morning trading.

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BoA downgrades DaVita to underperform, cuts price target