Acadia Healthcare Earns 12% Price Target Bump 'On Strong Q2' - Acadia Healthcare Co (NASDAQ:ACHC)

RBC Capital Markets raised the price target on Acadia Healthcare Company Inc ACHC to $94 from $84 with an Outperform rating unchanged.
The analyst updated the model for Q2 earnings and management's guidance raise, which reflects a tighter range, as well as $8.6 million of provider relief proceeds received in the second quarter.
With development activity tracking to plan, the target enterprise multiple of 15x remains in line with levels achieved amid accretive domestic expansion activity before the company's (now divested) UK acquisitions.
RBC says Acadia Healthcare posted solid Q2 earnings with adjusted EBITDA of $165.9 million coming in ahead of expectations, even after excluding $8.6 million of provider relief funds.
"We are encouraged to see ACHC's strong reimbursement trends in Q1 continue through the half, with SS revenue per patient day growing 7.8% in 2Q22, above overall nursing wage inflation in the 5-6% range.
The management raised FY23 adjusted EBITDA guidance to $591.5-621.5 million (from $575-610) and raised the low end of its revenue guidance to $2.56-2.60 billion (from $2.55-2.60 billion).
RBC says that the raised guidance reflects continued cost management amid a difficult backdrop and sustained progress with bed expansions, de novo, and joint venture development activity. The analyst raised the FY22 adjusted EBITDA estimate to $606.4 million (from $593.7 million), approximating the midpoint of management's revised range.
Price Action: ACHC shares are down 1.44% at $81.72 during the market session on the last check Monday.

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