BofA Securities Downgrades Acadia Healthcare (ACHC) to Neutral

BofA Securities analyst Joanna Gajuk downgraded Acadia Healthcare (NASDAQ: ACHC) from Buy to Neutral with a price target of $25.00 (from $27.00).

The analyst comments "We are downgrading Acadia Healthcare (ACHC) to Neutral from Buy and lowering our PO to $25 from $27 on a lower est (6.2x 2026E EBITDA vs 6.4x prior) as we see higher headwinds from cuts to Medicaid state directed payment programs (SDPs) than previously estimated. Since the cuts will start in out years, 2028+, which is not in our model, we lower our target PO to reflect the risks. The multiple is below ACHC's historical average of 13x given the volume growth below historical, legal headline overhang and upcoming cuts to Medicaid. We rate ACHC Neutral as we expect volume rebound as denovos ramp up in the medium term before the Medicaid cuts start."

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 $23.30 yesterday.

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