UPDATE: Bank of America Reiterates on Acadia Healthcare as Initial Guide Sets Base for Growth

In a report published Friday, Bank of America analyst Kevin Fischbeck reiterated a Buy rating on Acadia Healthcare (NASDAQ: ACHC), and raised the price target from $56.00 to $58.00.

In the report, Bank of America noted, “Our rating reflects our view that organic growth through bed additions/conversions supplemented by acquisitions will drive the fastest earnings growth in our coverage universe. Meanwhile, the expected rapid growth should allow the company to leverage its costs and close the margin gap between its current margin and its long-term 20% margin target. The management team has a proven track record in this industry executing on this type of strategy.”

Acadia Healthcare closed on Thursday at $51.89.