UPDATE: BMO Capital Markets Reiterates on Acadia Healthcare on Positive Growth Outlook

In a report published Thursday, BMO Capital Markets analyst Jennifer Lynch reiterated an Outperform rating on Acadia Healthcare (NASDAQ: ACHC), and raised the price target from $40.00 to $47.00.

In the report, BMO Capital Markets noted, “The shares of Acadia trade at 26.8x our FY2014 EPS estimate. Our price target of $47 represents 29.5x our $1.59 EPS estimate for next year. Our target valuation assumes a 49% earnings growth rate blended, which includes contribution from anticipated acquisitions. We continue to view the behavioral space as growthy, and we rate ACHC shares Outperform.”

Acadia Healthcare closed on Wednesday at $42.67.