DaVita Earnings: Stellar Results Boost 2023 Outlook

Narrow-moat DaVita turned in strong third-quarter results that exceeded expectations, and management increased its 2023 guidance for the third time this year. We are keeping our $104 fair value estimate intact, but recognize the firm's strong trends on the top and bottom lines, which may be enhanced by management's plans to resume its share repurchase program. We think repurchases would be a good use of capital considering recent trades well below intrinsic value and the firm's leverage in the middle of its target range.