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Fly News Breaks for November 16, 2018
ACHC
Nov 16, 2018 | 10:45 EDT
Cantor Fitzgerald analyst Dennis Pak attributes the selloff today in shares of Acadia Healthcare to CNBC's report that its sales process has stalled and does "not look particularly promising." The stock in morning trading is down 21%, or $8.04, to $29.82. The analyst thinks the initial read-through of CNBC's report by many investors is that Acadia's problems are more challenging than expected. Whether or not this transaction goes through, the company will be better positioned if it divests its U.K. operations, Pak tells investors in a research note. He finds it difficult to value Acadia without knowing more about the "market's appetite for the U.K. business." Pak keeps a Neutral rating on the shares with a $39 price target.