Acadia Healthcare has expanded its United Kingdom portfolio with the acquisition of a 15-bed residential rehabilitation facility in Southampton, England. The Manor Clinic center focused on addiction treatments, a sector of the British health services market in which Acadia was not yet active.
"As in the U.S., the addictions treatment market in the United Kingdom is large, growing and highly fragmented," said Chairman and CEO Joey Jacobs. "We believe The Manor Clinic is a wonderful opportunity through which to launch our presence in addictions treatment in the U.K., a market that we are confident represents a significant long-term growth opportunity for the Company."
Franklin-based Acadia also has completed its purchase of Belmont Behavioral Health in the Philadelphia market. Shares of the company (Ticker: ACHC) are up about 1 percent Wednesday to about $79.15. So far this year, they're up almost 30 percent.
Investors bid up shares of many Middle Tennessee health care companies Thursday morning after the U.S. Supreme Court upheld subsidies for people using the federal health insurance marketplace. At about 9:30 a.m., almost a half hour after the justices issued their opinion, both HCA Holdings and Community Health Systems were up about 8 percent — both to all-time highs — while fellow hospital operator LifePoint Health was up 5 percent. Other publicly held locals such as behavioral health plays Acadia Healthcare and AAC Holdings were up slightly. You can track all their movements today here.
Cordia Harrington of The Bun Companies and Joey Jacobs of Acadia Healthcare have been named regional EY Entrepreneurs Of The Year for 2015. The two executives were honored Wednesday night at a gala hosted by accounting firm EY at the Country Music Hall of Fame and Museum. The regional EOY program covers company builders in Alabama, Georgia, North Carolina, South Carolina and Tennessee. Read more about the event here.
Two longtime Healthways analysts on Friday cut their price targets for the population health management play after new and interim CEO Alfred Lumsdaine said 2015 profits will not meet expectations. But both Brooks O'Neil at Dougherty and Sean Wieland at Piper Jaffray are not telling investors to stop buying the company's shares, keeping Healthways at 'buy' and 'overweight' ratings, respectively. O'Neil's target for Healthways, which on Friday fell 20 percent to $12.40 (Ticker: HWAY), has come all the way down to $15 from $25. Wieland is staying more upbeat: His target now stands at $25.50, down from $27.
The skies are decidedly brighter for shareholders of Acadia Healthcare, which has climbed about 25 percent so far in 2015 after rising by about a third last year. Mizuho Securities analysts see even better days ahead and have launched coverage of the Franklin-based company with an 'outperform' rating at a price target of $84. Acadia (Ticker: ACHC) closed Friday trading at $76.47.
Acadia Healthcare has secured the necessary approvals and permits to begin construction of a long-planned 40-bed addition at one of its hospitals in Central Ohio. An expansion was in the works when Franklin-based Acadia acquired Behavioral Centers of America in 2012. However, Acadia upsized the plans to add 40,000 square feet. Read more from Columbus Business First here.
Analyst Paula Torch at Avondale Partners has raised her price target for shares of Acadia Healthcare to $80 from $77 following the company's Q1 earnings report. The company, she says, can reach a $2 billion revenue run rate by the end of next year by continuing to combine organic growth with acquisitions — for which it still has $180 million on its revolving credit line.
On the operations side, Torch said pricing pressures related to shorter lengths of stay in certain parts of the country should abate soon while there are opportunities to fill more than 600 beds at newly acquired CRC. That acquisition is on track to generate $7.5 million in savings this year.
"ACHC's stock appears priced to perfection," Torch wrote in a note on Friday. "However, we see plentiful opportunities for continued organic growth driven by its core psych business, the UK and CRC."
Shares of Acadia (Ticker: ACHC) closed Friday at $68.71, up slightly on the day. Year to date, they're down 5 percent.
This post has been updated to correct the info on Deutsche's call
Several investment firms tracking Acadia Healthcare on Thursday updated their models for the Franklin-based operator of behavioral health facilities after its Q1 report, which included word of three acquisitions in the United Kingdom. Analysts at Jefferies have hiked their price target to $88 from $76 while their peers at Cantor Fitzgerald now see Acadia climbing to $84 instead of $70. And Wells Fargo researchers have upgraded the stock to 'outperform' from 'market perform.'
Not everyone is quite that upbeat, though: At Deutsche Securities, veteran analyst Darren Lehrich has reiterated his 'buy' rating, saying he expects more acquisitions this year. But he has raised his target to "only" $77 from $72.
Investors appear to be paying more attention to Lehrich's move than to the more positive takes. At about 1:15 p.m., Acadia shares (Ticker: ACHC) were down slightly to $68.61 on volume that already had topped the daily average. So far this year, they've risen about 12 percent.
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