UPDATE: Deutsche Bank Considers DaVita as Core Large-Cap Holding in Health Care, Upgrade to Buy

In a report published by Deutsche Bank, analyst Darren Lehrich upgraded DaVita DVA from Hold to Buy and raised the price target from $130 to $136. In the report, Deutsche Bank noted, "When we downgraded DVA shares last month, our primary concern was the potential for a much more challenging 2014 outlook due to CMS' approach to Medicare Advantage (MA) rates in its February 15th proposal. Given the final outcome from CMS' MA regulation (with MA rates ~500 bps better vs. proposed), we are now less concerned about HCP's yoy earnings trajectory. This gives us greater confidence that DVA can stay on a pathway to earn well north of $9/share in cash EPS." Shares of DaVita closed at $119.91 on Monday.