Credit Suisse Thinks Premier Inc’s Stock is Going to Recover

By Carrie Williams

Credit Suisse analyst Robert Willoughby reiterated a Buy rating on Premier Inc (NASDAQ: PINC) yesterday and set a price target of $39. The company’s shares opened today at $30.24, close to its 52-week low of $29.68.

According to TipRanks.com, Willoughby is a 4-star analyst with an average return of 3.6% and a 43.2% success rate. Willoughby covers the Services sector, focusing on stocks such as Walgreens Boots Alliance, The Advisory Board, and AmerisourceBergen.

Premier Inc has an analyst consensus of Strong Buy, with a price target consensus of $35.75.

Based on Premier Inc’s latest earnings report from December 31, the company posted quarterly revenue of $291.7M and quarterly net profit of $11.18M. In comparison, last year the company earned revenue of $270.8M and had a net profit of $4.35M.

Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PINC in relation to earlier this year. Most recently, in August 2016, Stephen D’arcy, a Director at PINC bought 4,000 shares for a total of $123,640.

Premier, Inc. operates as a holding company with interests in health services. The company operates through the following segments: Supply Chain Services and Performance Services. The Supply Chain Services segment provides healthcare supply chain management services to a broad range of healthcare providers in the United States. The Performance Services segment provides informatics and advisory services to healthcare providers in the United States. Its SaaS informatics products utilize the comprehensive data set to provide actionable intelligence to its members, enabling them to benchmark, analyze and identify areas of improvement across three main categories: cost management, quality and safety, and population health management. Healthcare providers use insights delivered by the company’s SaaS informatics products in their operational processes to improve clinical outcomes, drive safety improvement, decrease mortality rates, enhance supply chain and labor efficiency and enhance financial performance. Its SaaS informatics products include QualityAdvisor, Quality Measures Reporter, PhysicianFocus, OperationsAdvisor, SafetyAdvisor, CareFocus, NetworkFocus, PhysicianFocus and PopulationFocus. Premier was founded on May 14, 2013 and is headquartered in Charlotte, NC.