Baird analyst Matthew Gillmor is not surprised by the reports that Acadia Healthcare is in talks to sell itself to private equity firms given considering management's history and the complexities with the U.K. business. His analysis suggests a leveraged buyout in the $40 to $45 per share range "could make sense" for a private equity bidder, with "perhaps some optionality" from separating the U.S. and U.K. operations over time. With the stock trading "just" 10% below his leveraged buyout takeout valuation, Gillmor says he's not inclined to chase the stock on today's rally. He keeps a Neutral rating on Acadia with a $42 price target. The stock in morning trading is up 9%, or $3.23, to $39.00.