Acadia Healthcare downgraded to Hold from Buy at Jefferies

Jefferies downgraded Acadia Healthcare (ACHC) to Hold from Buy with a price target of $15, down from $34. The company is facing a “broad set of operational and macro related headwinds,” the analyst tells investors in a research note. Jefferies sees limited near-term catalysts for Acadia to drive meaningful improvement in investor sentiment or its fundamentals. While the stock’s valuation “looks depressed,” the shares will remain range-bound over the next 12 months pending evidence of sustained same facility performance improvement, margin expansion, and balance sheet strengthening, contends Jefferies.