Leerink Partners analyst Whit Mayo has maintained their bullish stance on ACHC stock, giving a Buy rating on February 28.
Whit Mayo has given his Buy rating due to a combination of factors that reflect both challenges and potential growth for Acadia Healthcare. Despite a disappointing quarter and 2025 guidance, Mayo sees the company’s recent reset of growth targets as a strategic move to balance spending and free cash flow. The significant capital expenditure of nearly $1.4 billion over the past three years indicates a commitment to expansion, although the company is now moderating its spending.
While the fourth quarter results showed revenue and EBITDA falling short of expectations, Mayo notes that adjustments for one-time items bring the figures closer to consensus estimates. The addition of new beds and the management of start-up costs demonstrate ongoing growth efforts. Although 2025 guidance is below consensus, Mayo’s rating reflects a belief in Acadia’s ability to navigate these challenges and capitalize on its investments.
In another report released on February 28, Bank of America Securities also maintained a Buy rating on the stock with a $40.00 price target.