Premier upgraded to Neutral from Underperform at Credit Suisse

Credit Suisse analyst A.J. Rice upgraded Premier to Neutral from Underperform with a $38 price target. While Premier’s Supply Services business should benefit from the aging population and higher medical utilization over the long-term, and improved margins based on changing mix in direct sourcing, Premier faces risks as it attempts to execute its aggressive adjacent markets business growth plan, and several of its businesses in Performance Services are still generating little to no profits, the analyst tells investors in a research note. Credit Suisse believes risk and reward are balanced for Premier.