Bank of America Securities analyst Allen Lutz maintained a Sell rating on Premier (PINC – Research Report) yesterday and set a price target of $19.00.
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Allen Lutz has given his Sell rating due to a combination of factors impacting Premier’s financial outlook. Despite management’s efforts to position the company for growth by FY27 through improvements in gross administrative fees and performance services, the persistent pressure from net administrative fees remains a significant headwind. This pressure is expected to continue affecting the company’s financial performance through FY26, with only partial offsets from anticipated growth in other areas.
Additionally, while Premier is leveraging its data advantage to help clients navigate the uncertain tariff environment, the macroeconomic conditions pose challenges. The company’s firm-for-term pricing may aid in mitigating some inflationary pressures, but balancing this with supply chain resiliency remains a concern. Overall, the expected decline in net admin fee revenue and the current market price exceeding the price objective contribute to the Sell rating.