Mizuho Lowers Acadia Healthcare Price Target to $22.00

Analyst Ann Hynes from Mizuho has maintained a "Neutral" rating on Acadia Healthcare Co (ACHC) but lowered the price target from $32.00 to $22.00, a 31.25% decrease. RBC Capital, Barclays, Guggenheim, and UBS have also lowered their price targets, while maintaining their ratings. The average target price is $32.50, indicating a 56.48% upside from the current price. The estimated GF Value is $91.09, suggesting a 338.57% upside.

Acadia Healthcare Co (ACHC) has seen a significant shift in analyst ratings and price targets following its recent earnings report and broader market conditions. Analyst Ann Hynes from Mizuho has maintained a "Neutral" rating on the stock but lowered the price target from $32.00 to $22.00, a 31.25% decrease [3]. This move comes as other major investment firms, including RBC Capital, Barclays, Guggenheim, and UBS, have also adjusted their price targets, reflecting a more cautious outlook on the company's future performance.

RBC Capital has lowered its price target to $28.00, maintaining an "Outperform" rating, while Barclays has downgraded Illinois Tool Works (ITW) from "Equal-Weight" to "Underweight," setting a price target of $243.00 [1]. Guggenheim has adjusted its price target for ACHC to $29.00, citing concerns over weak Medicaid volume growth impacting earnings. UBS has reduced its price target to $31.00, reflecting a reduced 2025 adjusted EBITDA estimate due to a deteriorating operating environment, yet maintained a "Buy" rating [2].

The average price target among these analysts is $32.50, indicating a 56.48% upside from the current trading price of $20.77. This suggests that while analysts are cautious, they still see some potential for the stock to appreciate. The estimated Fair Value (GF Value) is $91.09, suggesting a 338.57% upside from the current price.

The recent earnings report showed Acadia Healthcare Co (ACHC) exceeding analyst expectations with an earnings per share (EPS) of $0.83, compared to the forecasted $0.70. However, several analysts have cited concerns over future cash flow, weak Medicaid volume growth, and execution missteps as reasons for the downward revisions in price targets.

Investors should carefully consider these adjustments and their potential impacts on their portfolios. The mixed reactions from analysts highlight the varying expectations and outlooks for Acadia Healthcare Co (ACHC) in the current market conditions.

References:
[1] https://www.investing.com/news/analyst-ratings/illinois-tool-works-stock-downgraded-by-barclays-on-limited-upside-93CH-4190926
[2] https://www.benzinga.com/analyst-stock-ratings/analyst-color/25/08/47132973/whats-going-on-with-coherent-stock-on-thursday
[3] https://ca.investing.com/news/analyst-ratings/mizuho-lowers-acadia-healthcare-stock-price-target-to-22-on-execution-issues-93CH-4158864