UBS Raises Price Target on Premier (PINC) Following Announced Essensa Ventures Acquisition
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UBS reiterated a Neutral rating on Premier, Inc. (NASDAQ: PINC), and raised the price target to $33.00 (from $32.50), following the company's announced acquisition of Essensa Ventures for $325MM. The deal is consistent with Premier's goal to expand its GPO presence across the continuum of care, specifically in the non-acute space.
Analyst Michael Cherny commented, "Innovatix and Essensa Ventures are two continuum of care GPOs (institutional healthcare providers outside the acute care hospital or health system), and Premier currently owns a 50% interest in the former. Innovatix currently serves more than 32,000 facilities (senior living facilities, independent medical oncologists, pharmacies, etc). Essensa is a national GPO serving ambulatory care, surgery centers, clinical laboratories, and other alternate sites of care. The company expects the acquisition to be immediately accretive. Premier expects the deal to contribute ~$53-$60MM to revenue, $18-$21MM to EBITDA and $0.04-$0.06 to EPS in FY17."
Shares of Premier, Inc. closed at $29.82 yesterday.
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