Avondale: AAC at 'compelling valuation'

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.

Nov 20, 2015 8:59 AM

Can the rise of addiction treatment companies help alleviate the opiate crisis?

An industry matures but other factors need to fall into place
Nov 15, 2015 10:15 AM

Earnings wrap: Acadia, Cumberland

Behavioral health player beats on revenue, EPS; drug developer's shares climb after hours
Nov 4, 2015 6:50 AM

AAC beats on EPS and revenue

But stock stumbles; Company still 'vigorously' defending California indictment
Oct 28, 2015 1:30 PM

AAC gets Florida facility license

Brentwood-based AAC Holdings has received a license for its 162-bed River Oaks Treatment Center near Tampa. The $18 million project takes AAC's total bed count to nearly 1,000.

Oct 16, 2015 7:18 AM

Big investor lends AAC a funding hand

Stock pops on word of convertible debt deal to help finish expansion projects, stay on M&A track
Oct 5, 2015 12:15 PM

Centerstone names military services executive director

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."

Sep 30, 2015 6:45 AM

UHS to acquire Foundations Recovery Network for $350M

Hospital company launching addiction treatment service line
Sep 22, 2015 1:00 PM

ChanceLight acquires Dallas pediatric therapy company

Rebranded Educational Services of America adds in-home treatment division
Sep 16, 2015 1:00 PM

Acadia announces big debt sale

Company will use some of the funding to refinance senior notes
Sep 14, 2015 12:01 PM