Raymond James downgraded Acadia Healthcare (ACHC) to Outperform from Strong Buy with a price target of $26, down from $40. The stock will likely not “work” until and unless the company generates EBITDA growth and positive free cash flow, which may not occur until 4Q25 and 2Q26, respectively, the analyst tells investors in a research note. While Raymond James applauds management’s recent decision to trim $100M from future expansion capex, deeper and more substantive changes are likely required to the growth model, the firm adds.
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