Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Cantor Fitzgerald maintained its Neutral rating and $25.00 price target on Acadia Healthcare (NASDAQ:ACHC), a $2.2 billion behavioral healthcare provider, in a research note released Friday. According to InvestingPro data, the company remains profitable with a healthy 42.21% gross margin, despite recent market challenges.
The firm cited third-quarter 2025 data showing Acadia’s progress in cost control measures through adjustments to its nursing staff composition.
The healthcare provider increased its proportion of licensed practical nurses (LPNs) compared to registered nurses (RNs), reaching 16% in the third quarter of 2025, up from 13% in the second quarter.
Acadia also demonstrated improvement in staffing levels, with total psychiatric positions open declining by 60 basis points to 1.6% in the third quarter, compared to 2.2% in the previous quarter.
The staffing adjustments appear to be part of Acadia Healthcare’s ongoing efforts to manage operational costs while maintaining appropriate staffing levels across its behavioral healthcare facilities.
In other recent news, Acadia Healthcare has been in the spotlight following several key developments. The company faced a downgrade from BofA Securities, which changed its rating from Buy to Neutral due to anticipated challenges from upcoming Medicaid state-directed payment cuts starting in 2028. Additionally, Mizuho lowered its price target for Acadia Healthcare to $22, citing execution issues in the company’s second-quarter 2025 results that fell short of consensus estimates. Raymond James also downgraded the stock from Strong Buy to Outperform, adjusting its price target to $26 due to concerns over future cash flow. Meanwhile, RBC Capital revised its price target down to $28 after updating its financial model in response to the same quarterly results.
Further adding to the company’s challenges, Engine Capital, an activist investor, has acquired a 3% stake in Acadia Healthcare and is advocating for significant changes within the company. Engine Capital is pushing for a board refresh and a halt to capital-intensive projects amid ongoing federal investigations. These developments highlight a period of significant evaluation and change for Acadia Healthcare, as the company navigates financial adjustments and strategic pressures.
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