"We have 70 percent of the dialysis care market dominated by two big players, so we have efficiency gains and there's not much more earnings power in the U.S. sector," said Brunninger.
"However moving a bit away from dialysis care, DaVita has diversified away and they have a broader approach now in saving managed dollars for broader patient populations," he added. "I think that is the future."
Last week, Nomura raised DaVita to a "buy" from "neutral," and hiked its price target to $120.
Beginning in 2014, the Obama administration is preparing for an estimated 30 million people to take advantage of its signature health care law. Health care companies are preparing to absorb the countless billions of dollars that will be spent on insurance for lower-income patients.
DaVita, Brunninger said, may become part of the more bullish outlook for health care stocks.
"It's all about changing the structure in the U.S. health care system," he said, adding that most health care systems around the world were moving toward lower spending on an increased population.
"It doesn't necessarily mean the quality needs to be diminished. But it's just about management and where the profits are going," he added.