UPDATE: Cantor Fitzgerald Initiates Acadia Healthcare at Buy on Favorable Industry Trends
Cantor Fitzgerald analyst Joseph D. France published a report on Acadia Healthcare (NASDAQ: ACHC), initiating coverage with a Buy rating and $35 price target.
Cantor Fitzgerald reported that, “We are initiating coverage of Acadia Healthcare with a BUY rating and $35 price target that values the company at roughly twice the acute care industry average, on both a P/E and EV/EBITDA (2014) basis, because of the more favorable regulatory environment for behavioral health services and the faster growth we expect Acadia to deliver as it capitalizes on changes in the market. Relative to other facilities-based behavioral health providers, we believe that Acadia is advantaged because it is the largest freestanding provider in the field. Our diluted EPS estimates are $1.00 in 2013 and $1.25 in 2014, compared with an adjusted $0.66 the company reported in 2012. Our $35 price target assumes that the stock can achieve a valuation of 11.6x our 2014 EBITDA estimate, which we believe potentially reflects Acadia's rapid growth in 2011-12, its competitive advantage, and industry trends that we believe are favorable.”
Shares of Acadia Healthcare closed at $28.04 on Tuesday.
Latest Ratings for ACHC
|Oct 2014||Deutsche Bank||Upgrades||Hold||Buy|
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