Premier Inc Gets a Buy Rating from Oppenheimer

In a report released today, Mohan Naidu from Oppenheimer assigned a Buy rating to Premier Inc (NASDAQ: PINC), with a price target of $40. The company’s shares closed yesterday at $29.17.

Naidu commented:

“We hosted PINC management for meetings which focused on concerns around the potential AMZN threat and growth. While investors nervous about AMZN’s potential entry into the healthcare field and medical supplies/Rx, we believe disrupting health system purchasing is unlikely given the high regulatory burden, financial model and more importantly, constant clinical work required to repetitively analyze and drive purchasing decisions. Health system purchasing is unlike B2C buying patterns, and PINC’s focus on a total cost of care approach makes it much harder to displace. Despite the recent utilization concerns, management expected to see mid-single digit organic GPO growth and also noted seeing improving utilization trends in the last 60 days. Reiterate Outperform, $40 target.”

According to, Naidu is a 4-star analyst with an average return of 5.6% and a 49.3% success rate. Naidu covers the Technology sector, focusing on stocks such as Quality Systems, Athenahealth, and Cerner Corp.

Premier Inc has an analyst consensus of Strong Buy, with a price target consensus of $38.20.

The company has a one-year high of $36.50 and a one-year low of $27.16. Currently, Premier Inc has an average volume of 668.3K.

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Premier, Inc. operates as a holding company with interests in health services. It specializes in data and analytics, supply chain solutions, advisory and other services. It operates through the Supply Chain Services, and Performance Services segments.

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