Acadia Healthcare’s Review by RBC Capital
RBC Capital analysts slightly lowered their price target on Acadia Healthcare Company, Inc. (NASDAQ:ACHC) to $93 from $94 while reiterating their Outperform rating.
As the leading provider of high acuity behavioral and addiction treatment services, the analysts continue to believe the company remains uniquely positioned to benefit from multiple tailwinds, which should drive double-digit long-term growth.
The analysts said they came away incrementally more positive on the company’s strategic approach to capitalize on these opportunities with bed additions expected to grow capacity by 7-10% annually.
From 2024 through 2028, management expects revenue to grow at a 9-11% CAGR to $4.5-5.0 billion, or almost double 2022 revenue. Over the same period, management expects to grow adjusted EBITDA at a 10-12% CAGR to $1.06-1.2 billion. Management offered an initial 2023 revenue range of $2.790-2.860 billion, which is slightly ahead of the $2.820 billion consensus at the mid-point.
| Symbol | Price | %chg |
|---|---|---|
| MIKA.JK | 3070 | 0 |
| SILO.JK | 2540 | 0 |
| SRAJ.JK | 1715 | 0 |
| HEAL.JK | 1335 | 0 |
Acadia Healthcare’s Review Following Strong Q4 Results
Analysts at RBC Capital provided their views on Acadia Healthcare Company, Inc. (NASDAQ:ACHC) following the company’s recently posted Q4 results, with EPS of $0.81 coming in better than the consensus estimate of $0.68.
According to the analysts, the company’s strong results reflected strong demand and labor cost management despite a tough environment, while initial 2022 guidance exceeded expectations thanks in part to strong 2021 M&A execution.
According to the brokerage, the company remains well-positioned to capitalize on increased demand for addiction and mental health treatment through the pandemic. Management’s balanced organic and inorganic growth strategy should continue to provide incremental upside in an attractive industry with secular tailwinds.
The company expects full 2022-year EPS in the range of $2.85-$3.15, compared to the consensus of $2.91, and revenue in the range of $2.55-2.6 billion, compared to the consensus of $2.48 billion.
