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ACHC

Acadia

$40.50

-1.44 (-3.43%)

13:23
11/13/18
11/13
13:23
11/13/18
13:23

Acadia Healthcare drops 19%, or $7.97, to $33.97

ACHC Acadia
$40.50

-1.44 (-3.43%)

10/18/18
MZHO
10/18/18
NO CHANGE
Target $37
MZHO
Neutral
Mizuho sees maximum Acadia leveraged buyout price at $48 per share
Mizuho analyst Ann Hynes reiterates this morning that her model suggests Acadia Healthcare's (ACHC) maximum leveraged buyout take-out price is $48.00 per share given its current debt levels. The stock in premarket trading is up 8%, or $3.32, to $39.00 after Reuters reported that the company is in talks with private equity firms about selling itself after attracting buyout interest. KKR (KKR) and TPG Global are among the private equity firms that have approached Acadia, according to Reuters. Hynes keeps a Neutral rating on Acadia shares with a $37 price target.
10/18/18
LEER
10/18/18
NO CHANGE
LEER
Acadia may receive 11-12 times multiple in private equity takeout, says Leerink
Following reports saying KKR (KKR) and TPG Global are reportedly in talks with Acadia (ACHC) on a take-private deal, Leerink analyst Ana Gupte notes that private equity has always been interested in the company given its addiction treatment centers acquired through CRC Health and outpatient focus on eating disorders and substance abuse, though the multiples at which a takeout would be acceptable to Acadia's management were unclear. The analyst expects the recent news flow on understaffing and quality of service delivery at Acadia in the short news report may be driving more willingness to entertain such a take private of the company. Gupte believes a 11-12 times multiple is likely and represents upside of about 35%-55% on the current $35 per share trading price.
10/18/18
BARD
10/18/18
NO CHANGE
Target $42
BARD
Neutral
Baird puts Acadia buyout price at $40-$45, says not chasing shares
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.
10/18/18
FBCO
10/18/18
NO CHANGE
FBCO
Acadia could be worth $43 per share in takeout, says Credit Suisse
In his leveraged buyout scenario, Credit Suisse analyst A.J. Rice says Acadia could be worth $43 per share. The analyst assumes top-line growth in the 6%-7% range and that margins grow from 21% in 2018 to 22.7% by 2023. Further, Rice believes the buyer could split the U.S. and U.K. businesses, which would likely be immediately accretive to the valuation of the U.S. business and give optionality to bringing on a partner on the U.K. side. The analyst notes that leveraged buyouts are not new to Acadia management, but adds that he sees no obvious strategic buyer here.

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