DaVita price target raised to $145 from $139 at BofA

BofA analyst Kevin Fischbeck raised the firm’s price target on DaVita to $145 from $139 and keeps an Underperform rating on the shares after adjusted operating income was $24M, or 5%, above consensus and $45M above the firm’s estimate after adding back $15M in closure costs that are now included in OI. The firm, which is raising EBITDA estimates, says that while margins continue to come in better, it questions the sustainability of the margin improvement if volumes don’t improve and reiterates its Underperform rating given the low visibility into volumes.