Deutsche Bank upgraded Acadia Healthcare to Hold from Sell with an unchanged price target of $70. The analyst remains concerned about the future of Acadia’s EBITDA if the government eliminates the moat protecting its Comprehensive Treatment Centers division, but believes the stock’s risk/reward profile at these levels is neutral. The firm says that if it were to get increased conviction that the Modernizing Opioid Treatment Act was to pass, with further legislation to follow, then it would become increasingly more negative on the shares. However, the American Association for the Treatment of Opioid Dependence, the lobby representing the clinics, is aggressively fighting the bill, the analyst tells investors in a research note.
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