UBS has upped its price target on DaVita (NYSE: DVA) to $190.00 from $186.00 while reaffirming a Buy recommendation, reflecting the brokers assessment of the company's 2026 outlook. Shares of the kidney care and healthcare services provider have gained sharply in recent trading, rising 27.25% over the past week to $144.64. Analyst price targets in the market span a range from $126 to $186.
The upward revision from UBS follows DaVita's guidance for 2026, which projects adjusted operating income growth of approximately 3% at the midpoint and adjusted earnings per share (EPS) growth of 33% at the midpoint. Management's active share repurchase program is highlighted as a factor likely to amplify EPS progression, according to available data.
UBS observed that the 33% year-over-year EPS increase appears unusually large, but noted that the comparison is affected by atypical items in 2025, including losses tied to the Mozarc joint venture that have now stopped permanently. The broker views the 2026 midpoint EPS baseline of $14.30 as a "high quality" earnings figure that does not rely on unusual gains, and therefore as a reliable starting point for modeling results in 2027 and beyond.
Company management signaled that a pending investment in Elara Caring - expected to close mid-year - should be immediately accretive to earnings, contrasting with the Mozarc arrangement in 2023, which generated multi-year losses. That difference was specifically cited in company commentary as a factor improving the quality of near-term earnings.
On the results front, DaVita HealthCare Partners Inc. reported fourth-quarter 2025 results that exceeded analyst expectations. The company posted EPS of $3.40 versus a consensus forecast of $3.24, and revenue of $3.62 billion compared with an expected $3.51 billion, a 3.2% beat. Adjusted earnings before interest and taxes (EBIT) also topped expectations by 3.4% in the quarter.
In separate analyst activity, TD Cowen has maintained a Hold rating on DaVita with a price target of $133. Together, the guidance, repurchase activity, and recent quarterly outperformance underpin the more constructive tone from UBS while other brokerages remain more cautious.
Market context:
- Healthcare services sector: company-specific guidance and capital allocation are driving stock moves.
- Equities: analyst target revisions and quarterly beats are influencing investor sentiment toward the name.