Acadia Healthcare rated BUY on strong expansion and growing mental health demand in the US.

Acadia Healthcare (ACHC) is rated a BUY due to its robust capacity expansion pipeline and the increasing demand for mental health services in the US. As the largest independent behavioral healthcare provider with 279 facilities and 12,600 beds, ACHC benefits from significant scale advantages. Its valuation is attractive with a forward EV/EBITDA of 8.8x, representing a discount to the sector median and its historical average. While the company carries high leverage, strong operating cash flow and interest coverage support its debt servicing, though regulatory reimbursement risks remain a key concern.