David Einhorn Recommends Five Transitioning Companies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy ACHC?
Source: seekingalpha
- Acadia's Recovery Potential: Einhorn highlighted Acadia Healthcare (ACHC), which has seen its stock plummet from nearly $90 to around $25, arguing that the market's reaction is excessive; if occupancy rates of new facilities rebound, EBITDA could increase by $200 million annually, potentially doubling the stock price.
- Centene's Profit Normalization: Einhorn believes Centene (CNC) will recover from rising healthcare costs and Medicaid pricing pressures, with margins expected to normalize in the coming years, projecting a stock price increase from $56 to between $85 and $102, indicating significant undervaluation.
- Fluor's Survival and Transformation: After nearly collapsing, Fluor (FLR) is positioned at the center of several infrastructure supercycles; Einhorn noted that the company has initiated a $1.4 billion buyback program, which could retire about 20% of outstanding shares, reflecting its recovery and future demand.
- Victoria's Secret Comeback: Einhorn discussed Victoria's Secret (VSCO), which is redefining its identity after cultural backlash, with new leadership aiming for a 10% operating margin, suggesting strong recovery potential as the brand stabilizes and grows under renewed management strategies.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ACHC?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on ACHC
Wall Street analysts forecast ACHC stock price to fall
11 Analyst Rating
5 Buy
5 Hold
1 Sell
Moderate Buy
Current: 27.150
Low
13.00
Averages
18.10
High
25.00
Current: 27.150
Low
13.00
Averages
18.10
High
25.00
About ACHC
Acadia Healthcare Company, Inc. is a provider of behavioral healthcare services. The Company owns and operates acute inpatient psychiatric facilities, specialty treatment facilities, comprehensive treatment centers (CTCs), residential treatment centers and facilities providing outpatient behavioral healthcare services to serve the behavioral healthcare and recovery needs of communities throughout the United States and Puerto Rico. Its acute inpatient psychiatric facilities provide a high level of care in order to stabilize patients that are either a threat to themselves or to others. Its CTCs specialize in providing medication-assisted treatment in an outpatient setting. Its specialty treatment facilities primarily consist of residential recovery facilities. It provides a comprehensive continuum of care for adults with addictive disorders and co-occurring mental disorders. Its residential treatment centers treat patients with behavioral disorders in a non-hospital setting.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
David Einhorn Recommends Five Transitioning Companies
- Acadia's Recovery Potential: Einhorn highlighted Acadia Healthcare (ACHC), which has seen its stock plummet from nearly $90 to around $25, arguing that the market's reaction is excessive; if occupancy rates of new facilities rebound, EBITDA could increase by $200 million annually, potentially doubling the stock price.
- Centene's Profit Normalization: Einhorn believes Centene (CNC) will recover from rising healthcare costs and Medicaid pricing pressures, with margins expected to normalize in the coming years, projecting a stock price increase from $56 to between $85 and $102, indicating significant undervaluation.
- Fluor's Survival and Transformation: After nearly collapsing, Fluor (FLR) is positioned at the center of several infrastructure supercycles; Einhorn noted that the company has initiated a $1.4 billion buyback program, which could retire about 20% of outstanding shares, reflecting its recovery and future demand.
- Victoria's Secret Comeback: Einhorn discussed Victoria's Secret (VSCO), which is redefining its identity after cultural backlash, with new leadership aiming for a 10% operating margin, suggesting strong recovery potential as the brand stabilizes and grows under renewed management strategies.
See More
David Einhorn Bullish on Overlooked Companies
- Acadia Healthcare: Einhorn highlighted that Acadia's newer facilities are underutilized, needing occupancy rates raised to 70-80% and improved reimbursement negotiations, with a potential share price of $56, doubling the current value.
- Centene's AI Potential: He argued that Centene could significantly benefit from AI in automating claims processing, with a projected stock value between $85 and $102, indicating substantial upside from the current $56 if margins normalize.
- Fluor's Capital Spending Opportunities: Einhorn noted that Fluor is well-positioned to capitalize on a U.S. capital spending boom across various sectors, suggesting shares could reach $115 in a few years, as the market underestimates its exposure to potential super cycles.
- Versant Media's Cash Flow Advantage: He mentioned that Versant Media remains insulated from streaming competition due to its focus on news and live sports, estimating it could generate free cash flow exceeding 60% of its market cap over the next four years for share buybacks or acquisitions.
See More
Einhorn Recommends Acadia and Centene Stocks at Sohn Conference
- Investment Recommendations: At the Sohn Investment Conference in New York, Greenlight's David Einhorn pitched Acadia Healthcare (ACHC) and Centene (CNC) as long-term investment ideas, indicating confidence in the healthcare sector and potentially attracting more investor interest in these stocks.
- Stock Performance: Centene (CNC) shares rose by 5% and Acadia Healthcare (ACHC) advanced by 3.2%, reflecting a positive market reaction to Einhorn's recommendations, which may drive short-term price increases for these companies.
- New Position Established: Greenlight initiated a new medium-sized position in Versant Media (VSNT), which was recently spun off from Comcast (CMCSA) and owns channels like MS Now, CNBC, and USA Network, demonstrating optimism about its future growth potential.
- Industry Analysis: Despite ongoing cord-cutting in the legacy cable business, Greenlight believes that over 60% of Versant's programming is tied to live news and events, making it more resilient to subscriber losses, which could provide stable returns for investors.
See More
Acadia Healthcare Shares Drop 9% on Disappointing Q2 Forecast
- Disappointing Forecast: Acadia Healthcare projected Q2 revenue at approximately $842.5 million, 2.7% below analyst expectations, leading to a 9% drop in stock price during afternoon trading.
- Q1 Performance: Although Q1 revenue grew 7.6% year-over-year to $828.8 million and adjusted EPS of $0.37 beat estimates, these results failed to alleviate market concerns about future performance.
- Stock Volatility: Acadia's shares have experienced 33 moves greater than 5% in the past year, indicating market sensitivity to current news, yet not fundamentally altering perceptions of the company's business.
- Leadership Change Impact: The reappointment of former CEO Debra K. Osteen has generated optimism in the market, but the actual impact on future performance remains to be seen.
See More
Acadia Healthcare Appoints Interim CFO Amid Leadership Transition
- CFO Transition: Acadia Healthcare announced that former CFO David Duckworth will return as interim CFO effective May 1, 2026, replacing Todd Young, who is leaving on April 30, 2026, indicating stability during leadership changes.
- Q1 Financial Outlook: The company reaffirmed its Q1 FY26 outlook, expecting revenue between $820 million and $830 million, adjusted EBITDA of $130 million to $137 million, and EPS of $0.25 to $0.30, demonstrating ongoing growth potential in the market.
- Full-Year Guidance: For FY26, Acadia continues to guide revenue between $3.37 billion and $3.45 billion, adjusted EBITDA of $575 million to $610 million, and EPS of $1.30 to $1.55, reflecting confidence in its long-term profitability.
- Capital Expenditure Stability: The capital expenditure guidance remains unchanged at $255 million to $280 million for FY26, indicating a cautious approach to expansion and investment aimed at supporting future business growth.
See More
Acadia (ACHC) Q3 2025 Earnings Call Transcript
See More
David Einhorn Recommends Five Transitioning Companies
- Acadia's Recovery Potential: Einhorn highlighted Acadia Healthcare (ACHC), which has seen its stock plummet from nearly $90 to around $25, arguing that the market's reaction is excessive; if occupancy rates of new facilities rebound, EBITDA could increase by $200 million annually, potentially doubling the stock price.
- Centene's Profit Normalization: Einhorn believes Centene (CNC) will recover from rising healthcare costs and Medicaid pricing pressures, with margins expected to normalize in the coming years, projecting a stock price increase from $56 to between $85 and $102, indicating significant undervaluation.
- Fluor's Survival and Transformation: After nearly collapsing, Fluor (FLR) is positioned at the center of several infrastructure supercycles; Einhorn noted that the company has initiated a $1.4 billion buyback program, which could retire about 20% of outstanding shares, reflecting its recovery and future demand.
- Victoria's Secret Comeback: Einhorn discussed Victoria's Secret (VSCO), which is redefining its identity after cultural backlash, with new leadership aiming for a 10% operating margin, suggesting strong recovery potential as the brand stabilizes and grows under renewed management strategies.
See More
David Einhorn Bullish on Overlooked Companies
- Acadia Healthcare: Einhorn highlighted that Acadia's newer facilities are underutilized, needing occupancy rates raised to 70-80% and improved reimbursement negotiations, with a potential share price of $56, doubling the current value.
- Centene's AI Potential: He argued that Centene could significantly benefit from AI in automating claims processing, with a projected stock value between $85 and $102, indicating substantial upside from the current $56 if margins normalize.
- Fluor's Capital Spending Opportunities: Einhorn noted that Fluor is well-positioned to capitalize on a U.S. capital spending boom across various sectors, suggesting shares could reach $115 in a few years, as the market underestimates its exposure to potential super cycles.
- Versant Media's Cash Flow Advantage: He mentioned that Versant Media remains insulated from streaming competition due to its focus on news and live sports, estimating it could generate free cash flow exceeding 60% of its market cap over the next four years for share buybacks or acquisitions.
See More
Einhorn Recommends Acadia and Centene Stocks at Sohn Conference
- Investment Recommendations: At the Sohn Investment Conference in New York, Greenlight's David Einhorn pitched Acadia Healthcare (ACHC) and Centene (CNC) as long-term investment ideas, indicating confidence in the healthcare sector and potentially attracting more investor interest in these stocks.
- Stock Performance: Centene (CNC) shares rose by 5% and Acadia Healthcare (ACHC) advanced by 3.2%, reflecting a positive market reaction to Einhorn's recommendations, which may drive short-term price increases for these companies.
- New Position Established: Greenlight initiated a new medium-sized position in Versant Media (VSNT), which was recently spun off from Comcast (CMCSA) and owns channels like MS Now, CNBC, and USA Network, demonstrating optimism about its future growth potential.
- Industry Analysis: Despite ongoing cord-cutting in the legacy cable business, Greenlight believes that over 60% of Versant's programming is tied to live news and events, making it more resilient to subscriber losses, which could provide stable returns for investors.
See More
Acadia Healthcare Shares Drop 9% on Disappointing Q2 Forecast
- Disappointing Forecast: Acadia Healthcare projected Q2 revenue at approximately $842.5 million, 2.7% below analyst expectations, leading to a 9% drop in stock price during afternoon trading.
- Q1 Performance: Although Q1 revenue grew 7.6% year-over-year to $828.8 million and adjusted EPS of $0.37 beat estimates, these results failed to alleviate market concerns about future performance.
- Stock Volatility: Acadia's shares have experienced 33 moves greater than 5% in the past year, indicating market sensitivity to current news, yet not fundamentally altering perceptions of the company's business.
- Leadership Change Impact: The reappointment of former CEO Debra K. Osteen has generated optimism in the market, but the actual impact on future performance remains to be seen.
See More
Acadia Healthcare Appoints Interim CFO Amid Leadership Transition
- CFO Transition: Acadia Healthcare announced that former CFO David Duckworth will return as interim CFO effective May 1, 2026, replacing Todd Young, who is leaving on April 30, 2026, indicating stability during leadership changes.
- Q1 Financial Outlook: The company reaffirmed its Q1 FY26 outlook, expecting revenue between $820 million and $830 million, adjusted EBITDA of $130 million to $137 million, and EPS of $0.25 to $0.30, demonstrating ongoing growth potential in the market.
- Full-Year Guidance: For FY26, Acadia continues to guide revenue between $3.37 billion and $3.45 billion, adjusted EBITDA of $575 million to $610 million, and EPS of $1.30 to $1.55, reflecting confidence in its long-term profitability.
- Capital Expenditure Stability: The capital expenditure guidance remains unchanged at $255 million to $280 million for FY26, indicating a cautious approach to expansion and investment aimed at supporting future business growth.
See More
Acadia (ACHC) Q3 2025 Earnings Call Transcript
See More
