In a report released on June 30, Michael Cherny from Leerink Partners maintained a Hold rating on Premier, with a price target of $24.00.
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Michael Cherny has given his Hold rating due to a combination of factors surrounding Premier’s recent acquisition of IllumiCare. The acquisition is strategically aligned with Premier’s mission to enhance clinical decision support capabilities and operational efficiency. However, while it adds strategic value, it is not expected to contribute significantly to Premier’s financials in the near term.
The ongoing renegotiations of the Group Purchasing Organization (GPO) net admin fee share and larger capital deployment are anticipated to have a more substantial impact on the stock’s performance. Additionally, Premier’s focus on shareholder returns through its accelerated share repurchase program indicates a stable capital allocation strategy. These elements combined lead to the conclusion that the stock is likely to maintain its current trajectory, justifying the Hold rating.