DaVita could be weak on Medicare Advantage rates, says Piper Jaffray Piper Jaffray believes shares of DaVita could be weak today following the release of Medicare's Advance Notice for 2015 Medicare Advantage rates, which it says was worse than expected. Piper notes Preliminary 2015 MA rates were down 7.8% versus expectations for a 6%-7% cut. The firm thinks final rates could improve and recommends buying shares of DaVita on any weakness. Piper maintains an Overweight rating on the stock with a $73 price target.
DaVita sees 2016 consolidated operating income $1.8B-$1.95B Sees operating income for Kidney Care for 2016 to be in the range of $1.625B-$1.725B, operating income for HCP for 2016 to be in the range of $175M-$225M and consolidated operating cash flows for 2016 to be in the range of $1.550B-$1.75B.