Premier initiated with a Market Perform at Leerink

Leerink initiated coverage of Premier with a Market Perform rating and $22.50 price target. The firm sees Premier having a vital fundamental role across the medical supply chain, serving as a strategic partner for its health system customers in driving down medical supply spend and other cost initiatives, the analyst tells investors in a research note. At the same time, the stock has a somewhat uncertain path forward for net administrative fee share, which could create an additional dampening effect on profit growth, the firm says. Leerink sees the stock as fairly valued.