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Acadia Healthcare upgraded to Buy from Hold at Deutsche Bank
The Fly

Acadia Healthcare upgraded to Buy from Hold at Deutsche Bank

Deutsche Bank upgraded Acadia Healthcare (ACHC) to Buy from Hold with a price target of $75, up from $45. The company has been an underperformer throughout 2024 due to a “steady stream of negative news,” which accelerated in September when a New York Times report alleged that Acadia was keeping patients against their will in its psychiatric hospitals, the analyst tells investors in a research note. Deutsche has turned bullish on the stock “simply because” it believes “there is a price for every asset.” At $40 per share, Acadia Healthcare presents an attractive risk/reward, the firm contends. Deutsche says its bullish is based on the replacement value of Acadia beds, its leveraged buyout scenario model, the stock’s valuation and its studying of history to anticipate the future.

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