Jefferies analyst Brian Tanquilut maintained a Buy rating on Acadia Healthcare (ACHC – Research Report) today and set a price target of $78.00.
Brian Tanquilut has given his Buy rating due to a combination of factors including Acadia Healthcare’s aggressive expansion strategy and the potential for significant earnings growth. The company’s management plans to add a substantial number of new beds over the next few years, which is expected to drive more than 15% EBITDA growth in 2026 and 2027. This growth is supported by the strong demand for behavioral health services and a current shortage in the industry, which provides a favorable environment for Acadia’s expansion.
Additionally, the company’s new facilities are projected to reach maturity with high occupancy rates within a few years, transitioning from initial losses to substantial EBITDA contributions. This strategic growth plan, coupled with the potential for valuation multiple expansion, underpins the Buy rating as Acadia is well-positioned to capitalize on the unmet demand in the behavioral health sector.