UPDATE: Deutsche Bank Downgrades Acadia Healthcare to Hold, Reiterates $19 PT
In a report published Wednesday, Deutsche Bank downgraded its rating on Acadia Healthcare Company (NASDAQ: ACHC) from Buy to Hold, and reiterated its $19.00 price target.
Deutsche Bank noted, “ACHC's recent run-up puts it within striking distance of our $19 price target. Fundamentally, we believe ACHC is performing in-line with our expectations and we still expect the company's M&A pipeline to turn-up a steady stream of hospital acquisitions (1 per quarter assumed in our model). At current valuations levels (9.1x forward EV/EBITDA), we believe much of the positive sentiment is priced-in and a Hold rating is a more appropriate stance.”
Acadia Healthcare Company closed on Tuesday at $17.90.
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