Cantor Fitzgerald analyst Joseph France reiterated a Buy rating on AAC Holdings (NYSE: AAC) today and set a price target of $14. The company’s shares closed on Friday at $11.99, close to its 52-week high of $13.06.
France commented:
“Organic growth. We expect acquisitions to account for up to half of AAC’s long-term growth, but after several years of large deals, we expect most of the company’s growth in 2018-19 to come from consolidation of the business it already has. Increasing AAC’s occupancy rate to 88% from 73% in 1Q18 could add $30-50 million of revenue and significantly improve margins from their current level of about 20%. Most of the company’s costs are fixed, and internal growth already cut of revenue in 1Q18 from 35% in 1Q17.”
According to TipRanks.com, France is a 4-star analyst with an average return of 10.1% and a 56.2% success rate. France covers the Services sector, focusing on stocks such as Cross Country Healthcare, Five Star Quality Care, and US Physical Therapy.
AAC Holdings has an analyst consensus of Moderate Buy, with a price target consensus of $14.
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Based on AAC Holdings’ latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $202K. In comparison, last year the company had a GAAP net loss of $603K.
Based on the recent corporate insider activity of 29 insiders, corporate insider sentiment is neutral on the stock.
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AAC Holdings, Inc. engages in the provision of rehabilitation operation. It operates through Substance Abuse and Behavioral Healthcare Treatment Services segment that consists of various treatment facilities in the United States. It offers inpatient and outpatient substance abuse treatment services to individual with drugs and alcohol addiction.
