Acadia Healthcare (ACHC) PT Raised to $39 at Guggenheim

Guggenheim analyst Jason Cassorla raised the price target on Acadia Healthcare (NASDAQ: ACHC) to $39.00 (from $38.00) while maintaining a Buy rating.

The analyst commented: "ACHC reported 2Q26 core EBITDA upside, with strong volumes and solid expense management as the company works through improving ramping bed occupancy. However, the stock fell ~16% (vs S&P 500 -1.5%) in reaction to the print, driven by a combination of heightened buyside expectations and incremental PLGL expenses pressuring what otherwise would have been >500 bps of annualized growth from OOP FL DPP. Despite these dynamics, we assume that the PLGL (related to 2025) does not become part of the core 2027 expense run-rate, and therefore offsets the baseline EBITDA headwind from the non-recurring OOP FL DPP. We nonetheless anticipate pushback on ACHC’s growth algo given the heightened propensity for accelerating PLGL expenses as the litigious environment surrounding behavioral health increases. However, the meaningful EBITDA harvesting opportunity from new facility openings remain. Combined with seemingly sticky improvements to ACHC’s FCF profile, we see the pullback in ACHC shares as overblown. Maintain BUY Rating – PT to $39 (from $38) factoring ACHC’s reduced net debt position."

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