Oppenheimer analyst Mohan Naidu maintained a Buy rating on Premier Inc (PINC) today and set a price target of $46. The company’s shares opened today at $33.91.
Naidu observed:
“Premier reported 3Q19 revenues of $423M, below our $432M estimate, but higher than modeled share repurchase in the quarter lifted the EPS above our estimate, to $0.66 vs. our $0.63. Net Admin fees rose 2% y/y on continued customer contract penetration, while Products revenues declined 2%, mostly on ASC606 accounting changes offsetting the oncology growth in the quarter. Rx business should alleviate some of the recent pressures which have been dragging the growth and margins for Premier. We anticipate the divestiture of Specialty Rx to decrease FY20 revenues by $470M+, but increase adj. EBITDA margins to mid-40s due to lower margins of divested entity. Reiterate Outperform, $46PT.”
According to TipRanks.com, Naidu is a 5-star analyst with an average return of 10.5% and a 55.8% success rate. Naidu covers the Services sector, focusing on stocks such as Tivity Health Inc, Hms Holdings Corp, and Evolent Health.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Premier Inc with a $39 average price target, which is a 15.0% upside from current levels. In a report issued on May 1, Citigroup also upgraded the stock to Buy with a $45 price target.
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The company has a one-year high of $47.22 and a one-year low of $28.81. Currently, Premier Inc has an average volume of 814.4K.
Based on the recent corporate insider activity of 51 insiders, corporate insider sentiment is negative on the stock.
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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.
