Acadia Healthcare Coverage Initiated at Cantor Fitzgerald (ACHC)
Cantor Fitzgerald initiated coverage on shares of Acadia Healthcare (NASDAQ: ACHC) in a research report sent to investors on Tuesday morning. The firm issued a buy rating and a $35.00 price target on the stock.
“We are initiating coverage of Acadia Healthcare with a BUY rating and $35 price target that values thecompany at roughly twice the acute care industry average, on both a P/E and EV/EBITDA (2014) basis, because of the more favorable regulatory environment for behavioral health services and the faster growth we expect Acadia to deliver as it capitalizes on changes in the market. Relative to other facilities-based behavioral health providers, we believe that Acadia is advantaged because it is the largest freestanding provider in the field. Our diluted EPS estimates are $1.00 in 2013 and $1.25 in 2014, compared with an adjusted $0.66 the company reported in 2012. Our $35 price target assumes that the stock can achieve a valuation of 11.6x our 2014 EBITDA estimate, which we believe potentially reflects Acadia’s rapid growth in 2011-12, its competitive advantage, and industry trends that we believe are favorable.,” the firm’s analyst wrote.
Acadia Healthcare traded up 0.78% on Tuesday, hitting $28.35. Acadia Healthcare has a 1-year low of $14.40 and a 1-year high of $29.03. The stock’s 50-day moving average is currently $26.53. The company has a market cap of $1.424 billion and a price-to-earnings ratio of 53.38.
A number of other analysts have also recently weighed in on ACHC. Analysts at Zacks downgraded shares of Acadia Healthcare from an outperform rating to a neutral rating in a research note to investors on Tuesday, February 26th. They now have a $28.50 price target on the stock. Separately, analysts at Raymond James raised their price target on shares of Acadia Healthcare from $27.00 to $30.00 in a research note to investors on Friday, February 22nd. Finally, analysts at BMO Capital Markets reiterated an outperform rating on shares of Acadia Healthcare in a research note to investors on Friday, February 22nd. They now have a $34.00 price target on the stock, up previously from $27.00.
Seven investment analysts have rated the stock with a buy rating, three have assigned an overweight rating, and one has issued a hold rating to the stock. The company presently has an average rating of buy and an average target price of $30.45.
Acadia Healthcare Company, Inc. is a provider of inpatient behavioral health care services in the United States.
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