Acadia Healthcare: Resilient Performance and Strategic Expansion Justify Buy Rating

Analyst Whit Mayo of Leerink Partners maintained a Buy rating on Acadia Healthcare (ACHC – Research Report), retaining the price target of $40.00.

Whit Mayo’s rating is based on several key factors that highlight Acadia Healthcare’s performance and potential. The company’s first-quarter results were generally in line with expectations, with revenues meeting estimates and EBITDA slightly exceeding them. Despite the challenges faced, such as a facility closure, Acadia managed to maintain a solid EBITDA margin, which suggests resilience and effective management.
Additionally, the company’s strategic expansion efforts, including the addition of new beds, indicate a commitment to growth. Although same-store revenue growth showed some deceleration, the overall performance was bolstered by these expansion initiatives. The company’s ability to manage start-up losses within expected ranges further supports the positive outlook. These elements combined contribute to Whit Mayo’s decision to maintain a Buy rating for Acadia Healthcare.

According to TipRanks, Mayo is a 4-star analyst with an average return of 3.2% and a 50.25% success rate. Mayo covers the Healthcare sector, focusing on stocks such as Pediatrix Medical Group, Ardent Health Partners, Inc., and Acadia Healthcare.

In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $44.00 price target.