In a report released today, Mohan Naidu from Oppenheimer maintained a Buy rating on Premier Inc (PINC), with a price target of $46. The company’s shares opened today at $40.99.
Naidu noted:
“PINC reported F2Q19 rev/EPS ahead of expectations at $422M/$0.66 vs. our $416M/ $0.61 and consensus $415M/$0.64 ests. Performance solutions outperformed in the quarter due to growth in applied sciences, consulting services and ASC 606 changes pulling forward some of the performance segment revenues. As mgmt. has previously discussed, product segment continued to be weak and offset the strength in other segments. Further, mgmt. noted that adj. EBITDA/EPS could be below guidance midpoint due to tough comps, investments in growth opportunities and reimbursement pressures. We continue to believe that PINC’s relationships and stakeholders are a big source of defensibility and growth opportunities and expect to see stability in numbers as ASC 606 anniversaries and as hospitals move toward risk-based reimbursement. Reiterate Outperform, adjusting PT to $46 from $47.”
According to TipRanks.com, Naidu is a 5-star analyst with an average return of 11.4% and a 55.5% success rate. Naidu covers the Services sector, focusing on stocks such as Tivity Health Inc, Evolent Health, and CVS Health.
Premier Inc has an analyst consensus of Moderate Buy, with a price target consensus of $45.75.
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Based on Premier Inc’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $681 million. In comparison, last year the company had a net profit of $281 million.
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Premier, Inc. operates as a holding company with interests in health services. It specializes in data and analytics, supply chain solutions, advisory and other services. It operates through the Supply Chain Services and Performance Services segments.
