Psych Hospital Operator Acadia Healthcare Downgraded As It Braces For Medicaid Cuts
1. BofA downgraded ACHC from Buy to Neutral amid future Medicaid cuts. 2. Price forecast lowered from $27 to $25 due to decreased estimates. 3. Same-store volumes decelerated, impacted by legal issues and payor pressures. 4. Despite the downgrade, BofA predicts medium-term volume rebound from new beds. 5. ACHC reported strong Q2 earnings, beating consensus with positive sales growth.