10:50 AM EDT, 05/28/2025 (MT Newswires) -- Acadia Healthcare's ( ACHC ) revised long-term growth targets are "reasonable" as they reflect the longer ramp of new facilities, RBC Capital Markets said in a Tuesday note.
The company provided additional commentary on its revised long-term outlook, saying that the lower-than-expected earnings before interest, taxes, depreciation, and amortization was mainly related to the longer ramp of new facilities compared to expansion beds, RBC analysts noted.
Acadia management also pointed out conservatism related to rate growth assumptions, given uncertainty surrounding policy and the macro environment, the analysts said.
The analysts said the company's clarifications "comprise a reasonable basis" for the revised long-term outlook.
RBC maintained its outperform rating and $43 price target on the stock.
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