Benchmark Co. analyst Bill Sutherland has maintained their neutral stance on PINC stock, giving a Hold rating today.
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Bill Sutherland has given his Hold rating due to a combination of factors affecting Premier’s current financial performance. The company faced challenges in its Advisory Services, resulting in lower-than-expected revenue and EBITDA for the second quarter of FY25. However, Premier maintained its full-year guidance, bolstered by positive developments in Supply Chain Services, which showed better-than-anticipated revenue growth.
Despite these mixed results, there are encouraging signs such as a leadership change aimed at improving Performance Services and a significant share repurchase program underway. The expectation is that improvements in Performance Services will materialize by the June quarter, which might make the stock more attractive. For now, the stock is supported by a substantial repurchase authorization, justifying the Hold rating until more consistent performance improvements are realized.
Sutherland covers the Healthcare sector, focusing on stocks such as Cross Country Healthcare, Premier, and Surgery Partners. According to TipRanks, Sutherland has an average return of -4.3% and a 41.43% success rate on recommended stocks.
In another report released today, Piper Sandler also reiterated a Hold rating on the stock with a $19.00 price target.