DaVita Turns in Solid Q2 and Maintains 2022 Outlook; No FVE Change

Despite significant challenges, DaVita reported solid second-quarter operating results that allowed the company to maintain its 2022 outlook, which appeared in stark contrast to its key peer Fresenius Medical Care's report last week. With DaVita generally tracking toward our expectations for the full year, we are maintaining our $116 fair value estimate and continue to think shares remain undervalued. We believe DaVita's narrow economic moat appears intact, too, reflecting significant intangible assets and cost advantages associated with its top-tier position in dialysis services, despite ongoing challenges.