Deutsche Bank Upgrades Acadia Healthcare Shares To Buy, Sees 11% Upside


In a research report issued today, Deutsche Bank analyst Darren Lehrich upgraded shares of Acadia Healthcare (NASDAQ:ACHC) to Buy from Hold and raised his price target to $72 (from $52), which represents a potential upside of 11% from where the stock is currently trading.

Lehrich observed, “Very strong Q3: revs +59% YoY and EPS +53% YoY. Impressive organic growth continues (SS revs +10%) and should remain similar into 2015 due to visibility on internal bed growth. On the back of very accretive (30%+) PiC deal, ACHC annc’d CRC — an even bigger and more accretive specialty behavioral chain in U.S. We include CRC preliminarily in our model for 2015-2016, and are left more convinced ACHC’s high growth rate will not abate for quite some time. Our model points to 2016 EBITDA $507M / EPS $3.12. Adjusting the EV for CRC debt and S/O, we raise rating to Buy from Hold and PT to $72 ($52) and now apply 13x to the out-yr (prior 12x) given higher growth. “

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Darren Lehrich has a total average return of 16.8% and a 76.5% success rate. Lehrich is ranked #61 out of 3354 analysts.

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