Fee Share Pressure To Impact Premier's Growth, Analyst Cautions
Portfolio Pulse from Nabaparna Bhattacharya
Benchmark analyst Bill Sutherland has reiterated a Buy rating on Premier, Inc (NASDAQ:PINC), but lowered the price target to $32 from $37. The company's Q4 results showed flat GAAP net revenue of $340.4 million, impacted by a decline in direct sourcing product revenue. The analyst expects FY24 revenue of $1.37 billion, up 2%, and FY25 revenues of $1.425 billion, up 4% y/y. However, the analyst warns of a potential impact on growth due to an expected rise in GPO net admin fee share with providers.
August 23, 2023 | 6:22 pm
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Premier, Inc's growth may be impacted by an expected rise in GPO net admin fee share with providers, despite a reiterated Buy rating from Benchmark analyst.
The analyst's warning about the potential impact on Premier, Inc's growth due to an expected rise in GPO net admin fee share with providers, despite a reiterated Buy rating, could negatively affect investor sentiment and the company's stock price in the short term.
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IMPORTANCE 80
RELEVANCE 100