UPDATE: Deutsche Bank Upgrades Acadia Healthcare to Buy; Compelling Growth Momentum
Deutsche Bank raises its rating on Acadia Healthcare (NASDAQ: ACHC) from Hold to Buy and increases its price target from $15 to $19.
Deutsche Bank comments, "Our stance upon initiation of coverage (Jan 2012) was simple: growth will be good but the shares may pull back and offer a better entry point. With the recent equity offering, the balance sheet and capacity to accretively acquire put it in a place where the next meaningful N-T move in the shares is likely to be up and not down, in our view. Given the growth outlook and improved capital structure, we believe a higher multiple is warranted (we go from 8.5x to 9.5x 2013E EV/EBITDA or 20x P/E) bringing our PT to $19 from $15."
ACHC closed at $16.51 on Wednesday.
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