Canopy Growth stock tumbles after announcing $200 million share sale plan
On Wednesday, Premier, Inc. (NASDAQ:PINC) saw its price target increased by Piper Sandler to $24.00, up from the previous $19.00, while the firm maintained a Neutral rating on the stock. The adjustment follows Premier’s third fiscal quarter of 2025 results, which surpassed both revenue and earnings expectations. The stock, currently trading at $23.1, has shown strong momentum with a 24.63% return over the past year and is trading near its 52-week high of $23.56. According to InvestingPro, the stock appears undervalued based on its Fair Value analysis. Additionally, the company improved its consolidated adjusted EBITDA guidance by 2.4%, setting it at $251.0 million at the midpoint.
Premier’s recent financial performance was particularly notable given the context of its ongoing restructuring, which began in August 2020. The company’s ability to outperform despite the renewal process of its restructure cohort is a positive sign. Piper Sandler’s decision to raise the price target is based on a steady 12.0x multiple of calendar year 2026 estimated adjusted EBITDA, an approach that remains unchanged despite the progression of time. With revenue growth of 7.16% in the last twelve months, Premier demonstrates resilience in its business model. Discover more insights about Premier’s performance with InvestingPro’s comprehensive research report, featuring detailed analysis and 14+ additional ProTips.
The raised guidance and strong results were underpinned by robust purchasing volume and Net Administrative Fee Revenue, which Piper Sandler found encouraging. The firm has updated its Net Administrative Fee Revenue projections and revised its fiscal year 2025 through 2027 estimates to reflect these developments.
Despite the optimistic indicators, Piper Sandler has opted to retain a stance of caution, choosing to remain on the sidelines until fiscal year 2026 guidance is provided and there is further evidence to suggest that the recent strength in purchasing volume is sustainable and not merely a result of accelerated demand. The firm’s updated analysis and forecasts are detailed in Exhibits 1-3 of their report, providing a comprehensive outlook on Premier’s financial trajectory.
In other recent news, Premier Inc . reported its fiscal third-quarter earnings for 2025, significantly surpassing analyst expectations. The company achieved an adjusted earnings per share (EPS) of $0.46, well above the projected $0.30, and reported a revenue of $261.4 million, exceeding the anticipated $240.45 million. Despite a year-over-year revenue decline of $25 million, Premier Inc. achieved its highest quarterly adjusted EBITDA margin of the fiscal year at 28.4%. The company has also raised its adjusted EBITDA guidance range by $6 million and its adjusted EPS range by $0.10. Additionally, Premier Inc. announced a strategic partnership with Epic and is investing in AI-enabled technologies. On the analyst front, there were no specific upgrades or downgrades reported, but the company’s performance has been positively noted. Premier Inc. remains focused on organic investments and potential tuck-in acquisitions to drive growth.
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