Oppenheimer analyst Mohan Naidu reiterated a Buy rating on Premier Inc (NASDAQ: PINC) today and set a price target of $48. The company’s shares opened today at $40.20.
Naidu noted:
“Premier beat F4Q18 estimates handily across the board with strong performance in all segments. The growth recovery in the Performance segment is a positive surprise and likely to appease investors. Supply Chain Services delivered strong growth, with good contributions from both net administrative fees and the Products segment. Net admin fees grew with contract penetration, while Products saw continued strength in integrated pharmacy and direct sourcing. Several positive datapoints in the quarter and mgmt.’s view on the Performance segment give us confidence. And with opportunistic capital deployment, PINC is likely to benefit from the recent CMS push toward double-sided risk. Despite investor concern about AMZN’s threat, current-quarter performance and potential upside opportunities make us excited here. Reiterate Outperform rating, increasing target to $48 from $40.”
According to TipRanks.com, Naidu is a 5-star analyst with an average return of 16.5% and a 63.8% success rate. Naidu covers the Services sector, focusing on stocks such as Tivity Health Inc, Hms Holdings Corp, and Express Scripts.
Premier Inc has an analyst consensus of Moderate Buy, with a price target consensus of $41.33.
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Based on Premier Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $104 million. In comparison, last year the company had a GAAP net loss of $314 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.
