Price Target Increase#
TD Cowen has raised its price target for Acadia Healthcare (NASDAQ: ACHC) from $24.00 to $30.00 while maintaining a Buy rating on the stock. Currently, Acadia's shares are trading at $28.16, close to their 52-week high of $28.48, which indicates a significant 98% increase in value this year.
Strong Earnings Performance#
The firm highlighted that Acadia's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the fourth quarter of 2025 exceeded analysts' expectations by 4%. Last week, Acadia reaffirmed its guidance for the first quarter and full year of 2026, coinciding with the announcement of a new Chief Financial Officer (CFO).
Strategic Changes and Valuation#
TD Cowen believes that the improved first-quarter 2026 results, along with a more disciplined approach to capital allocation (how the company spends its money), make Acadia's stock an attractive option. The firm has adjusted its valuation multiple to 8.1 times earnings, which is about one turn higher than before, leading to the new price target of $30.
Leadership Changes#
In recent news, Acadia Healthcare appointed David Duckworth as Interim CFO, effective May 1, 2026, following Todd Young’s departure. Duckworth has previously held the CFO position from 2012 to 2023. Additionally, Daniel Cancelmi has joined Acadia's board of directors, bringing valuable experience from his time as CFO at Tenet Healthcare Corporation. These leadership changes are part of Acadia's ongoing strategic adjustments.