Deutsche Bank Upgrades Acadia Healthcare (ACHC) to Hold 'on a neutral risk/ reward'

Deutsche Bank analyst Pito Chickering upgraded Acadia Healthcare (NASDAQ: ACHC) from Buy to Hold with a price target of $70.00.

The analyst comments "We are upgrading ACHC to Hold and keeping our $70 price target. ACHC is down 8.6% YTD vs other providers like HCA up 18% due to a plethora of concerns. While we remain concerned about the future of ACHC’s EBITDA story if the government eliminates the moat protecting ACHC’s CTC division, we believe the risk/reward profile at these levels is neutral and hence our upgrade. If we were to get increased conviction that the Modernizing Opioid Treatment Act was to pass, with further legislation to follow, then we would become increasingly more negative. The American Association for the Treatment of Opioid Dependence, the lobby representing the clinics, is aggressively fighting this bill. We believe it may be difficult for a lobby of for-profit providers to convince legislators when they are going head-to-head with physicians from the American Society of Addiction Medicine. With that said, we believe the risk/reward profile is neutral at these levels."

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 $71.19 yesterday.

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