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Investing.com - UBS raised its price target on Premier, Inc. (NASDAQ:PINC) to $26.00 from $23.00 on Wednesday, while maintaining a Neutral rating on the healthcare improvement company’s shares. According to InvestingPro data, the stock currently trades at a P/E ratio of 23.04, reflecting its premium valuation in the healthcare sector.
The price target increase follows Premier’s recent earnings report, which exceeded market expectations and helped drive the stock to a new 52-week high. The company has demonstrated strong momentum, with InvestingPro data showing a remarkable 26.24% year-to-date return. Despite maintaining its Neutral stance, UBS acknowledged Premier’s continued ability to outperform expectations.
UBS noted that Premier has managed to execute effectively even as its customers face a challenging macro environment, including tariff pressures and Medicaid headwinds. The firm’s analysis indicates that Premier’s free cash flow is expected to remain relatively flat year-over-year in fiscal 2026.
Premier currently offers an 8% free cash flow yield, according to UBS calculations. The firm highlighted that this projection comes despite a one-time $100 million benefit from the Tax Receivable Agreement (TRA) roll-off.
UBS also noted that Premier has completed $800 million in share repurchases over the past year, though the firm no longer models future share repurchases in its projections. The price target increase reflects a one-times higher multiple applied to Premier’s valuation.
In other recent news, Premier Inc . reported strong fiscal fourth-quarter earnings that exceeded analyst expectations, with an earnings per share of $0.46 compared to the projected $0.34. The company also reported revenue of $262.86 million, surpassing the consensus estimate of $247.13 million. Despite a 12% decrease in revenue from the same period last year, there was a 1% sequential increase from the third quarter. Additionally, Premier provided a solid outlook for fiscal year 2026. In analyst updates, Canaccord Genuity raised its price target for Premier to $25 from $22 while maintaining a Hold rating. BofA Securities also adjusted its price target to $21 from $19, citing Premier’s potential to capitalize on growing demand for advisory services. Both firms emphasized Premier’s ability to navigate regulatory and legislative pressures. These developments reflect ongoing interest and varied perspectives on Premier’s future performance in the market.
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