UPDATE: BMO Capital Markets Reiterates Outperform Rating, Raises PT on Acadia Healthcare Company on In-Line Results
In a report published Friday, BMO Capital Markets reiterated its Outperform rating on Acadia Healthcare Company (NASDAQ: ACHC), and raised its price target from $27.00 to $34.00.
BMO Capital Markets noted, “Results this quarter were in line with Street expectations and included double-digit same-facility revenue growth. There was some confusion around the FY2013 guidance relative to analyst expectations. During the conference call management provided clarity around a number of below-the-line items, revealing an EBITDA projection that was very much close to the Street. Bed mix showed a continued shift to the acute side, resulting in a 55% to 45% ratio of acute to residential. The pipeline looks robust in the fragmented behavioral space, and Acadia is actively pursuing targets. Management commented on a desire to gain more nonprofit holdings and improving overall EBITDA margin, which improved 600+ bp YOY in the fourth quarter. We are still bullish on the behavioral space and prefer it to the acute care hospital environment, which continues to be adversely affected by volume issues.”
Acadia Healthcare Company closed on Thursday at $26.27.
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