KeyBanc Cuts Price Target on Acadia Healthcare (ACHC) to $52

KeyBanc maintained an Overweight rating on Acadia Healthcare (NASDAQ: ACHC), and cut the price target to $52.00 (from $58.00), following the the latest management communications on capital deployment at a recent conference and the removal of unannounced M&A from estimates.

Analyst Jason Gurda commented, "Cutting estimates and price target on ACHC but reiterate our Overweight rating as we view shares as attractive at current levels with solid organic growth opportunities. Our estimate cuts reflect the latest mgmt. communications on capital deployment at a recent conference and the removal of unannounced M&A from our estimates. Given ACHC’s size and the limited number of large deal opportunities remaining, we believe the Street will increasingly model ACHC this way in the future. That said, we see ACHC as attractive at current levels with solid growth opportunities ahead. Importantly, we note ACHC has little direct risk to the ACA repeal and replace legislation. Further, we see potential for meaningful M&A later this year, which could provide upside as ACHC redeploys capital from the recent U.K. divestitures. We believe ACHC commentary suggests the Co. could add $1.0B-$1.5B in U.S. revenue."

For an analyst ratings summary and ratings history on Acadia Healthcare click here. For more ratings news on Acadia Healthcare click here.

Shares of Acadia Healthcare closed at $37.50 yesterday.

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