Stock market today: Stocks fall as investors rotate out of tech into Jackson Hole
Investing.com - Mizuho has reduced its price target on Acadia Healthcare (NASDAQ:ACHC) to $22.00 from $32.00 while maintaining a Neutral rating on the stock. The healthcare provider, currently trading at $20.77, has seen its shares decline over 71% in the past year, with InvestingPro data showing the stock trading below its Fair Value.
The price target adjustment follows Acadia Healthcare’s second-quarter 2025 results, which Mizuho noted fell short of consensus estimates when excluding the incremental impact of direct provider payments (DPPs) for the period. The company maintains a revenue growth of 5.64% over the last twelve months, though nine analysts have recently revised their earnings expectations downward.
Mizuho cited "execution missteps" as a key factor in its decision to lower estimates for Acadia’s adjusted EBITDA from 2025 through 2027.
The firm also expressed concerns about uncertainty regarding the ongoing impact of Medicaid Redeterminations and the One Big Beautiful Bill Act (OBBBA) on the healthcare provider’s business.
These factors have led Mizuho to "remain on the sidelines" regarding Acadia Healthcare stock, despite maintaining its Neutral rating.
In other recent news, Acadia Healthcare reported its second-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.83, compared to the forecasted $0.70. Despite this positive earnings surprise, several investment firms adjusted their outlooks on the company. Raymond James downgraded Acadia Healthcare from Strong Buy to Outperform, citing concerns over future cash flow, and reduced its price target significantly to $26.00. RBC Capital also lowered its price target to $28.00, maintaining an Outperform rating, following the company’s recent earnings announcement. UBS decreased its price target to $31.00, reflecting a reduced 2025 adjusted EBITDA estimate due to a deteriorating operating environment, yet maintained a Buy rating. Guggenheim lowered its price target to $29.00, attributing this to concerns over weak Medicaid volume growth, which is expected to impact the company’s earnings. These developments highlight the mixed reactions from analysts concerning Acadia Healthcare’s financial outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.