Baird analyst Whit Mayo views today's announcement from DaVita as a "de-risking event" with higher than expected patient numbers. The disclosed $230M worst-case operating income hit includes on-exchange and off-exchange patients, and is in the range of what was expected, Mayo tells investors in a research note. DaVita earlier today announced that it will suspend support for applications to the American Kidney Fund for charitable premium assistance by Medicaid patients who are seeking additional coverage through an Affordable Care Act plan. The change will affect approximately 2,000 patients, the company said. To reflect a "scenario for payer mix reversion," Mayo lowered his 2017 earnings per share estimate for DaVita to $4.06 from $4.69. He also cut his price target for the shares to $68 from $85. Mayo keeps an Outperform rating on DaVita, which is trading up 5% to $57.92.