12:17 PM EDT, 05/22/2024 (MT Newswires) -- Acadia Healthcare's ( ACHC ) is positioned well to benefit from improving trends that will drive demand in the near and intermediate term, RBC Capital Markets said in a note emailed Wednesday.

The stock's 25% decline since late February appears as an appealing opportunity to invest in the company, given its positioning amid long-term trends and easing labor challenges, the note said.

Just 10% of the 9 million US citizens with opioid use disorder receive medication-assisted therapies. The industry could see significant benefits from $40 billion to $50 billion in opioid settlement funds, majority of which will be directed to treat opioid use disorder. "With only 10% of these funds having been distributed to states, [Acadia] has not seen a material impact on fundamentals, though we continue to believe the funding could represent a multi-year tailwind."

In Q1 the company saw solid results, total revenue increased 9% to around $768 million and the company expects mid-single-digit growth in same-store patient days in the latter half of the year due to expansions and joint ventures.

RBC maintained its outperform rating on Acadia with a price target of $94.

Price: 67.05, Change: +1.69, Percent Change: +2.59