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RayJay: New Acadia Healthcare CEO Gets Warm Welcome On The Street

RayJay: New Acadia Healthcare CEO Gets Warm Welcome On The Street

The introduction of Acadia Healthcare Company’s (NASDAQ: ACHC) new CEO to the financial community was well-received, according to Raymond James.

CEO Debra Osteen aims to release a comprehensive strategic plan in May, which should reflect the company’s capital deployment plans and the future of its UK portfolio, the sell-side firm said. 

The Analyst

Raymond James’ John Ransom reiterated an Outperform rating and $40 price target for Acadia Healthcare.

The Thesis

During the earnings call, the behavioral health care provider said it closed nine UK facilities in 2018 and plans for some of these sites to serve higher acuity patients, Ransom said in a Monday note. The bed adds being targeted in 2019 will take place at existing facilities, he said. 

The company guided to 2019 revenue of $3.15-$3.2 billion, adjusted EBITDA of $610-$630 million and adjusted EPS of $2.15-$2.30.

It expects 21.5 percent of the 2019 EBITDA to be generated in the first quarter

The biggest drivers in the year are likely to be the ramping of six de novos, rate increases in the U.S. and UK markets and an $8-$9-million improvement from the calendar and payroll taxes.

Acadia Healthcare remains best-positioned to leverage favorable industry trends according to Raymond James. 

Price Action

Acadia Healthcare shares were down 2.89 percent at $29.53 at the time of publication Monday. 

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Earnings Scheduled For February 28, 2019

Latest Ratings for ACHC

Mar 2019BairdMaintainsNeutralNeutral
Mar 2019CitigroupMaintainsBuyBuy
Jan 2019Deutsche BankInitiates Coverage OnHold

View More Analyst Ratings for ACHC
View the Latest Analyst Ratings

Posted-In: Analyst Color Earnings News Guidance Health Care Price Target Reiteration Analyst Ratings Best of Benzinga


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