Acadia (ACHC) Should Be Bought on CMA Enforcement Order Weakness - Mizuho

Mizuho Securities analyst Ann Hynes said reaction in Acadia Healthcare (NASDAQ: ACHC) to CMA enforcement order is overdone and they would be buyers on weakness.

Hynes commented, "The U.K.'s Competition and Markets Authority (CMA) served an initial enforcement order relating to ACHC's completed Priory acquisition. The CMA, like the U.S.'s FTC, is responsible for strengthening business competition and preventing the reduction of anti-competitive activities in the U.K and is the primary authority for reviewing mergers. The CMA may conduct an initial review of a merger if it is 1) notified by the company before the merger is completed or 2) the CMA initiates its own investigation either during the merger process or after it is completed. The CMA has a deadline of 40 days to complete its initial merger review, but may also enter into a phase 2 review (usually 24 week deadline) after a initial review is completed."

The firm reiterated a Buy rating and price target of $92.

For an analyst ratings summary and ratings history on Acadia Healthcare click here. For more ratings news on Acadia Healthcare click here.

Shares of Acadia Healthcare closed at $56.84 yesterday.

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