Avondale Partners analyst Paula Torch says investors should look at the beaten-up shares of AAC Holdings — they've recovered only slightly from their summer slump — as a chance to buy a company with a clear growth pipeline and the financing to pull it off.
Yes, the legal issues in California that caused the stock to fall in the summer are still there, Torch says, but she has her fingers crossed that there will be clarity in the coming months. In the meantime, the AAC team has access to $100 million in M&A capital, and an organic expansion push should grow to 1,200 the beds in AAC's portfolio next year, with another 150 new beds slated for 2017.
"AAC continues to execute well and fundamentals remain intact with overhangs resulting in a compelling valuation vs. growth. We believe census remains strong, referral sources are healthy, and recent financing provides an extended bridge to execute on its current expansion plans," said Torch, who is sticking by her $32 price target for AAC, shares of which are changing hands this morning at $22.70.
Nonprofit behavioral health care provider Centerstone has named Col. Kent Crossley as executive director of Military Services.
Crossley, a U.S. Army veteran, will be based in Nashville and oversee programming, operations and fundraising activities related to military and veteran services.
"We are delighted to welcome Kent as executive director of Centerstone Military Services," David Guth Jr., Centerstone CEO, said in a release. "His insight and leadership will be invaluable as Centerstone seeks to expand how we support veterans, service members and their loved ones. Our team looks forward to working with him to continue to build the services we provide the military and veteran communities."
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