BofA warns Fed risks policy mistake with early rate cuts
Investing.com - Canaccord Genuity raised its price target on Premier, Inc. (NASDAQ:PINC) to $25.00 from $22.00 on Wednesday, while maintaining a Hold rating on the stock. The company’s shares have shown strong momentum, gaining over 41% in the past six months and currently trading near its 52-week high of $27.26. According to InvestingPro data, Premier maintains a "GREAT" overall financial health score.
The price target increase represents a target multiple of 8.3x CY’26E adjusted-EBITDA, which maintains a 30% discount to the provider technology peer group that trades at 11.8x.
Canaccord Genuity indicated that Premier’s improved outlook warrants less of a discount compared to previous valuations.
The firm noted that Premier’s stagnant growth profile continues to justify maintaining some discount relative to peers in the provider technology sector.
The peer group currently demonstrates mid-to-high single-digit growth rates, which contrasts with Premier’s more modest growth performance.
In other recent news, Premier Inc . reported strong fiscal fourth-quarter earnings that exceeded analyst expectations. The company posted earnings per share of $0.46, surpassing the anticipated $0.34, and reported revenue of $262.86 million, beating the consensus estimate of $247.13 million. Although this revenue figure marked a 12% decrease from the same period last year, it showed a 1% increase from the previous quarter. Additionally, BofA Securities raised its price target for Premier to $21.00 from $19.00, maintaining an Underperform rating. The firm highlighted Premier’s potential to offset net administrative fee pressure by leveraging increased demand for its advisory services. This demand is expected to grow by 25% in fiscal year 2026 due to regulatory and legislative pressures on health systems. These developments underscore Premier’s ability to navigate current market challenges and capitalize on future opportunities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.