Acadia Healthcare downgraded to Sell at Deutsche Bank on CTC business concerns

As previously reported, Deutsche Bank analyst Pito Chickering downgraded Acadia Healthcare to Sell from Hold with a price target of $63, down from $75. The firm is concerned that the methadone clinics CTC business could potentially shift from a 10% grower into a slower growth category or potentially a headwind with declining opioid patients, the analyst tells investors. While the firm says it holds management "in high esteem," and acknowledges the timing of the impact of the negative drivers that cause its concern is "unclear," it believes "investors need to underwrite ACHC‘s growth with the short-term risk from Medicaid redetermination as well as the longer tail risk from the MAT Act and the drag that could have on" the CTC business.