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On Monday, Cantor Fitzgerald maintained its Neutral rating on Acadia Healthcare shares (NASDAQ:ACHC), with a steady price target of $52.00. The firm’s analysts highlighted that recent data does not indicate any negative impact on Acadia’s recruitment efforts, despite the company being mentioned in New York Times (NYSE:NYT) articles in January 2024. According to InvestingPro analysis, the stock appears undervalued, with a P/E ratio of 14.7x and strong financial health metrics. The attention now turns to the healthcare provider’s fourth-quarter earnings call, where 2025 EBITDA guidance will be closely watched.
The analysts expressed optimism, noting that the absence of recruitment pressure is a positive sign for the facilities named in the NYT articles. Recruitment is a vital aspect of healthcare operations, and stability in this area can be indicative of a company’s overall health. The analysts are looking ahead to the fourth-quarter call to gain insights into the company’s financial projections and operational strategies for the upcoming year.
Acadia Healthcare’s overall performance metrics appear to be on the rise, building upon what was described as an already stable foundation. With revenue growth of 9.1% and a gross profit margin of 43.1%, the company is not only managing to maintain its operational efficiency but is also potentially improving upon it. InvestingPro subscribers have access to dozens more financial metrics and insights through comprehensive Pro Research Reports, available for over 1,400 US stocks.
The upcoming earnings call is anticipated to shed more light on the company’s financial health and future prospects. Investors and analysts alike will be keen to understand how Acadia Healthcare plans to navigate the coming year, particularly in terms of EBITDA, a key indicator of a company’s operating performance.
Cantor Fitzgerald’s reiteration of the Neutral rating and $52.00 price target indicates a watchful, yet cautiously optimistic approach to Acadia Healthcare’s stock. As the market anticipates the fourth-quarter earnings call, the company’s ability to meet or exceed guidance will likely be a significant factor influencing investor sentiment.
In other recent news, Acadia Healthcare has reported a steady increase in same-facility patient days for the quarter ending December 31, 2024, with a growth of 3.2%. The company has also seen a consistent revenue growth of 9.1% over the last twelve months. On the analyst front, TD Cowen has revised its price target for the company from $70.00 to $66.00, maintaining a Buy rating. This adjustment was primarily due to an update in the company’s financial model. KeyBanc Capital Markets, however, upgraded the stock rating of Acadia Healthcare to Overweight, indicating a positive shift in perspective.
Acadia Healthcare also reported an 8.7% increase in total revenue for the third quarter of 2024, primarily driven by patient day growth and rate improvements. Their adjusted EBITDA saw a growth of 10.5%, reaching $194.3 million. The company is expanding its bed capacity and projects the addition of approximately 1,200 new beds in 2024, with further investments in over 2,000 additional beds. These are among the recent developments in Acadia Healthcare’s operations.
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