Bank of America just raised its EUR/USD forecast
On Wednesday, KeyBanc Capital Markets adjusted its outlook on Acadia Healthcare (NASDAQ:ACHC) shares, reducing the price target from $65.00 to $55.00, yet maintaining an Overweight rating. The adjustment followed Acadia’s first-quarter earnings report, which surpassed EBITDA expectations by 2% and demonstrated steady to improving same-store volumes. According to InvestingPro data, the company currently trades at a P/E ratio of 12.67x and appears undervalued based on its Fair Value analysis.
The report by KeyBanc suggests that Acadia Healthcare’s financial performance has found stable ground after facing challenges in the second half of 2024. The company’s first-quarter results are seen as a positive step towards achieving a stronger performance in the latter half of the year. With EBITDA reaching $632.15M and revenue growth of 5.48% in the last twelve months, InvestingPro data shows the company maintains a GOOD overall Financial Health Score of 2.88. According to KeyBanc, the seasonal trends and EBITDA projections indicate a clear path for Acadia’s growth in the upcoming months, although it will demand consistent operational execution.
KeyBanc’s analysis anticipates that Acadia Healthcare’s EBITDA and free cash flow (FCF) will likely see an uptick in 2026, potentially leading to a normalized valuation range between 8 to 10 times earnings. The revised price target of $55 reflects a 9.5x multiple on EBITDA, slightly lower than the previous 10x multiple. InvestingPro analysis reveals the company operates with a debt-to-equity ratio of 0.76, an important consideration for its future growth potential. Get access to the comprehensive Pro Research Report for deeper insights into Acadia’s financial health and growth prospects.
This price target update comes as KeyBanc integrates the latest financial data into their model, taking into account the company’s current market position and the potential for future growth. Despite the lowered target, KeyBanc’s Overweight rating indicates a positive outlook on Acadia Healthcare’s stock, underlining a confidence in the company’s ability to navigate through the moving pieces of the market and execute its strategy effectively.
In other recent news, Acadia Healthcare reported its first-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $0.40, slightly above the forecast of $0.39. However, the company saw a minor shortfall in revenue, reporting $770.5 million compared to the expected $777.25 million. Despite this revenue miss, Acadia Healthcare’s strategic operational updates and expansion efforts, such as adding 378 new beds, have contributed to a positive market reaction. The company reaffirmed its full-year 2025 revenue and EBITDA guidance, indicating confidence in its growth strategies. Analysts from UBS and Jefferies have noted ongoing demand in the behavioral health sector, which Acadia Healthcare is well-positioned to capitalize on. Additionally, the company is working on overcoming challenges from underperforming facilities, which have been factored into their guidance. Acadia Healthcare remains committed to its strategic growth initiatives, including plans to add 600-800 beds annually from 2026 to 2028.
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