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Investing.com - Premier, Inc. (NASDAQ:PINC) received a price target increase from Piper Sandler on Monday, with the research firm raising its target to $28.00 from $24.00 while maintaining a Neutral rating on the stock. The company’s shares have shown remarkable momentum, surging nearly 41% over the past six months, and currently trade near their 52-week high of $27.26. According to InvestingPro data, Premier maintains a "GREAT" overall financial health score.
The price target adjustment follows Premier’s fourth-quarter performance, which showed net administrative fee revenue of $150.1 million, exceeding consensus estimates of $136.3 million. The company reported gross administrative fee growth of over 3.0% in fiscal year 2025, driven by contract penetration and new members. While Premier maintains a strong free cash flow yield of 15%, InvestingPro analysis indicates the stock trades at a relatively high P/E multiple of 37.3x.
Premier’s total supply chain services (SCS) revenue reached $170.0 million in the fourth quarter, surpassing both the midpoint of implied guidance by $21.0 million and consensus estimates of $153.3 million. The SCS revenue beat included a one-time cancellation fee estimated at approximately $10.0 million within net administrative fee revenue.
Performance services revenue came in at $92.9 million, falling below consensus expectations of $96.9 million and missing the midpoint of implied guidance by $10.1 million when excluding Contigo Health. Overall, Premier’s fourth-quarter adjusted EBITDA of $68.9 million exceeded consensus estimates of $64.7 million, driven by high incremental margins on the supply chain services revenue.
For fiscal year 2026, Premier issued guidance excluding Contigo Health of $970.0 million in revenue at the midpoint, compared to consensus estimates of $979.6 million, and adjusted EBITDA of $237.5 million at the midpoint versus consensus of $235.5 million. The newly acquired IllumiCare asset is expected to contribute approximately $9.0 million in revenue with no impact on adjusted EBITDA. For deeper insights into Premier’s valuation and growth prospects, including 12 additional ProTips and comprehensive financial metrics, visit InvestingPro to access the detailed Pro Research Report.
In other recent news, Premier, Inc. reported strong fiscal fourth-quarter earnings, surpassing analyst expectations. The company achieved earnings per share of $0.46, well above the projected $0.34, and reported revenue of $262.86 million, exceeding the consensus estimate of $247.13 million. Despite a 12% revenue decrease compared to the same period last year, the figure marked a 1% increase from the previous quarter. Following these results, UBS raised its price target for Premier to $26, maintaining a Neutral rating, while Canaccord Genuity increased its target to $25 with a Hold rating. BofA Securities also adjusted its target to $21, maintaining an Underperform rating, citing Premier’s ability to leverage demand for advisory services amid regulatory pressures. These developments indicate that Premier’s performance has been positively received by analysts, reflecting confidence in its strategic direction. The company’s solid outlook for fiscal 2026 has also contributed to these adjustments. Premier continues to navigate market conditions with a focus on growth and adaptability.
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