Acadia Healthcare: Buy Rating on Improving Execution, Embedded EBITDA Growth, and Discipline Under Returning CEO

Ryan Langston, an analyst from TD Cowen, maintained the Buy rating on Acadia Healthcare. The associated price target was raised to $24.00.

Ryan Langston has given his Buy rating due to a combination of factors tied to Acadia Healthcare’s improving execution and earnings outlook. The company outperformed expectations on recent adjusted EBITDA, while 2026 guidance, though slightly below consensus, aligned with what investors anticipated and reflects a realistic, achievable plan under the returning CEO focused on operational discipline and free cash flow.

Management is pivoting from aggressive expansion to optimizing recently added capacity, with substantial embedded EBITDA expected as occupancy increases over the next several years. Lower capital spending, a path to deleveraging, and disciplined capital allocation, alongside baked-in regulatory costs and potential upside from supplemental payments, support a higher price target based on a reasonable multiple of projected 2027 adjusted EBITDA.

In another report released on February 23, Guggenheim also maintained a Buy rating on the stock with a $22.00 price target.