Joanna Gajuk, an analyst from Bank of America Securities, reiterated the Buy rating on Acadia Healthcare (ACHC – Research Report). The associated price target was lowered to $44.50.
Joanna Gajuk has given her Buy rating due to a combination of factors that highlight Acadia Healthcare’s potential for growth despite some near-term challenges. The company’s long-term revenue and EBITDA growth projections have been slightly reduced, yet they remain attractive with high single-digit growth rates. This is particularly notable as the stock is currently trading at a lower multiple compared to its historical average, suggesting potential upside.
Moreover, Acadia Healthcare’s recent announcement of a $300 million share repurchase program signals management’s confidence in the company’s future growth prospects. Although the 2025 guidance falls below expectations due to startup losses and the impact of a facility closure, the addition of new beds is expected to support future growth. These factors, combined with the company’s strategic initiatives, underpin the Buy rating despite the short-term headwinds.
In another report released on February 26, Jefferies also maintained a Buy rating on the stock with a $78.00 price target.
ACHC’s price has also changed dramatically for the past six months – from $78.140 to $40.260, which is a -48.48% drop .