Benchmark Co. analyst Bill Sutherland has maintained their neutral stance on PINC stock, giving a Hold rating on November 6.
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Bill Sutherland has given his Hold rating due to a combination of factors surrounding Premier’s current financial and strategic position. The company’s recent earnings report for F1Q26 showed revenue in line with expectations and slightly better-than-expected adjusted EBITDA and EPS. However, the lack of updated FY26 guidance due to the pending acquisition by Patient Square Capital adds uncertainty to the company’s future financial outlook. The acquisition deal, although offering a premium to the recent trading levels, suggests a transitional phase for Premier, impacting its strategic direction.
Moreover, Premier is experiencing a transitional year with anticipated declines in adjusted EBITDA due to renegotiations of 2020 contracts, which are expected to affect the Supply Chain segment. While there is potential growth in Performance Services, driven by sales conversions and an active opportunity pipeline, the overall financial performance remains mixed. The pending acquisition and the transitional nature of FY26, characterized by adjustments in the GPO fee structure and operating expenses, contribute to the Hold rating as investors await more clarity on the company’s future trajectory.
In another report released on November 6, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $30.00 price target.