UPDATE: Bank of America Reiterates Buy Rating, Raises PT on DaVita HealthCare Partners After Strong Quarter

In a report published Friday, Bank of America reiterated its Buy rating on DaVita HealthCare Partners DVA, and raised its price target from $134.00 to $138.00. Bank of America noted, “DVA reported a strong quarter with EBITDA $15m above our est as both segments did better than guidance and our model expected. While the company only reaffirmed its 2013 guidance, we chalk this up to the conservative nature of management as the better Q4 and a 2-month delay in sequestration since they originally provided guidance points to materially better 2013 results and we feel increasingly comfortable at the high end of guidance. More importantly, despite DVA expressing some concerns around the dialysis integrated care demo, we believe that ultimately CMS and DVA will reach common ground and DVA will participate. We are raising our 2013/14 EPS est to $7.55/$7.60 from $7.18/$7.22 and initiating our 2015 EPS of $8.20. We are raising our PO to $138 from $134 as we continue to like DVA given its strong organic growth and good FCF, as well as the benefits of the HCP deal.” DaVita HealthCare Partners closed on Thursday at $119.21.