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.