Acadia Healthcare: Strong Financial Performance and Growth Prospects Amidst Adjusted Price Objective

In a report released today, Joanna Gajuk from Bank of America Securities reiterated a Buy rating on Acadia Healthcare (ACHC – Research Report), with a price target of $33.00.

Joanna Gajuk’s rating is based on Acadia Healthcare’s strong financial performance and future growth prospects. The company’s Q1 EBITDA exceeded expectations, coming in 2% above consensus and towards the higher end of the guidance range, primarily due to improved margins. Despite a deceleration in same-store volumes and revenues, which was partly attributed to an unfavorable leap year impact, the company reaffirmed its fiscal year 2025 guidance.
Furthermore, Joanna Gajuk highlights Acadia Healthcare’s attractive growth potential, driven by bed additions, which positions it above the industry average. The stock is currently trading at a lower multiple compared to its historical average, making it an appealing investment opportunity. Although the price objective was adjusted from $40 to $33 due to a lower peer multiple, the Buy rating is reiterated because of the company’s robust growth outlook and favorable trading conditions.