BofA downgrades Acadia Healthcare to Underperform after another guidance cut

As previously reported, BofA downgraded Acadia Healthcare (ACHC) to Underperform from Neutral with a price target of $13, down from $21.50, after the company cut its adjusted EBITDA guidance by $49M, or 7%, on higher insurance costs and noted it expects a similar level of insurance costs in 2026. The firm, which is cutting its 2025, 2026 and 2027 estimates to reflect the higher costs, also applies a lower multiple given the risk of additional litigation costs/ settlements and higher leverage, the analyst tells investors.