Jefferies Raises Price Targets on 3 Top Growth Stocks to Buy Now

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You can feel the sluggishness in the market hanging like the late summer humidity. With traders and Wall Street professionals slowly slipping off for vacation, the very perceptible slowdown is upon us. One good thing for investors during this very slow month is some stock gems can be found while others are away. A new research report from Jefferies zeroes in on top new growth stocks to buy.

The Jefferies team also initiated coverage of some recent initial public offerings, but we are more drawn to three other calls that could make very good sense for growth stock investors looking to add to portfolios. All three are rated Buy, and they all get the price target moved higher.

Acadia Healthcare

This company could have a revenue explosion over the next three years, if the Jefferies team is right. Acadia Healthcare Company Inc. (NASDAQ: ACHC) is a provider of inpatient behavioral health services. It operates a network of 226 behavioral health facilities, with approximately 9,200 beds in 37 states, the United Kingdom and Puerto Rico. Acadia provides psychiatric and chemical dependency services to its patients in a variety of settings, including inpatient psychiatric hospitals, residential treatment centers, outpatient clinics and therapeutic school-based programs.

The company released outstanding second-quarter numbers, and the rest of the year looks very solid. For the quarter, revenue increased a stunning 112.2% to $453.7 million from the year-ago quarter. Income from continuing operations was $33.8 million, or $0.49 per diluted share, for the second quarter of 2015, up from with $22.5 million, or $0.43 per diluted share, for the second quarter of 2014.

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The Jefferies team reviewed everything after the stellar earnings and came to the conclusion that the firm’s price target and estimates needed to go higher. They also think that revenues at the company can double in three years, owing to not only strong organic growth, but potential acquisitions.

The Jefferies price target jumps to $100 from $88. The Thomson/First Call consensus target is $93.54. The stock closed Friday at $81.02.