DaVita weakness on MA rates a buying opportunity, says Deutsche Bank

theflyonthewall.com

Deutsche Bank says the preliminary 2014 Medicare Advantage rates released by the Centers for Medicare and Medicaid Services late Friday came in weaker than expected. The firm notes the preliminary rate package adjusts a number of formulas, which it believes could result in Medicare Advantage rates declining in the mid-single digits if the proposed rule were to be finalized later this year. Deutsche expects DaVita to navigate through the payment changes and recommends buying the stock today on weakness.

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