Oppenheimer analyst Mohan Naidu maintained a Buy rating on Premier Inc (NASDAQ: PINC) yesterday and set a price target of $40. The company’s shares closed yesterday at $31.57.
Naidu wrote:
“Premier’s reported numbers beat estimates at $425M/$0.67 vs. $408M/$0.66. Supply Chain segment outperformed in the quarter with strong GPO revenues and products revenues. The acquisitions of Innovatix and Essensa added to the GPO growth along with further contract penetration. Integrated Pharmacy and direct sourcing lifted products revenues. But weakness continued in the performance segment and led to the guidance adjustment for the fiscal year. Seasonal ambulatory revenues came in lower than expected. Due to the expansion in lower-margin product revenues vs higher-margin performance segment, our EBITDA decreases. While the supply chain segment continues to perform well, with traction in both inpatient and outpatient settings, we believe the headwinds in the performance segment might take time to turn around.”
According to TipRanks.com, Naidu is a 4-star analyst with an average return of 7.7% and a 52.1% 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 Strong Buy, with a price target consensus of $37.75.
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Based on Premier Inc’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $281 million. In comparison, last year the company had a GAAP net loss of $79.8 million.
Based on the recent corporate insider activity of 52 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.
