Is Davita Ready To Revive?

摘要

In times of economic weakness, recession-resistant stocks are supposed to be safe havens. But it ain't necessarily so. One such outfit is Big Board-listed DaVita (DVA), the second-largest U.S. provider of dialysis services for chronic kidney failure. Shares fell to 43.40 from 58 in September, although earnings are on the rise. The company's balance sheet is robust, generating yearly cash flow of $400 million, or $4 a share, notes Andreas Dirnagl, managing director at investment bank Stephens, who rates DaVita outperform, with a 12-month target of 67. Worries that the recession will trim profits and revenues are groundless, says Dirnagl. He sees earnings of $3.81 in 2009 and $4.24 in 2010.