DaVita HealthCare Partners Inc. (NYSE:DVA) shares gained around 2.1% in premarket trading after TD Cowen upgraded the kidney dialysis provider from Hold to Buy and increased its price target to $220 from $201. The brokerage cited DaVita’s strengthening competitive position and improving long-term growth prospects as key reasons for the more optimistic stance.
Analysts also highlighted the results of the MOTheR trial, which they believe could introduce a new treatment approach capable of supporting patient growth without requiring significant additional investment in equipment.
Upgrade Follows Better-Than-Expected Quarterly Results
The positive rating comes shortly after DaVita reported second-quarter 2026 earnings that exceeded market expectations.
The company posted adjusted earnings of $4.02 per share, ahead of the consensus forecast of $3.92, while revenue of approximately $3.55 billion also surpassed analyst estimates.
Despite the earnings beat, the shares declined following the results after management maintained its full-year guidance and reported a slight reduction in revenue generated per treatment, disappointing investors who had anticipated stronger forward-looking commentary.
Analysts See Attractive Entry Point
TD Cowen believes the post-earnings weakness has created an appealing buying opportunity, arguing that the recent pullback does not reflect the company’s longer-term earnings potential.
The firm noted that DaVita has strengthened its market position relative to its largest competitor, although it also pointed to potential risks, including the possibility of Berkshire Hathaway reducing its stake and ongoing legal proceedings.
Positive Market Sentiment Adds Support
The broader market also provided a favourable backdrop, with the S&P 500 rising around 0.2% and the Nasdaq gaining approximately 0.5% during premarket trading.
Within the healthcare services sector, DaVita has received several upward price target revisions in recent months from firms including UBS and Truist, reflecting growing confidence in the company’s earnings outlook despite ongoing margin pressures.
The combination of TD Cowen’s upgrade, the recent share price pullback and improving investor sentiment helped lift DaVita shares in early trading.
DaVita stock price
