Benchmark Co. analyst Bill Sutherland has maintained their neutral stance on PINC stock, giving a Hold rating on August 25.
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Bill Sutherland has given his Hold rating due to a combination of factors surrounding Premier’s current financial and operational outlook. Despite ending the fiscal year on a strong note with growth in supply chain revenue and improved sales conversion in performance services, the company is entering a transitional phase. The guidance for FY26 indicates a decline in adjusted EBITDA, primarily due to renegotiated contracts affecting the GPO fee share, which suggests some near-term financial pressure.
While there are positive signs, such as the expected growth in performance services and a reduction in operating expenses, these are offset by uncertainties in revenue growth and margin pressures in the short term. Additionally, although the company has strong liquidity and cash flow, the transitional nature of the upcoming fiscal year and the need for further evidence of sustained growth contribute to the Hold rating. Sutherland’s assessment reflects a cautious optimism, acknowledging potential for future growth but recognizing the current challenges that warrant a wait-and-see approach.
In another report released on August 25, Piper Sandler also maintained a Hold rating on the stock with a $28.00 price target.