Premier, Inc. (PINC) PT Lowered to $19 at Canaccord Genuity

Canaccord Genuity analyst Richard Close lowered the price target on Premier, Inc. (NASDAQ: PINC) to $19.00 (from $20.00) while maintaining a Hold rating.

The analyst commented: "We are adjusting our price target to $19 based upon a target multiple of 6.4x CY'25E core adj-EBITDA, a maintained 50% discount to a peer group of provider-focused technology companies that currently trades at 12.8x 2025E adj-EBITDA excl. high and low. Our estimates have not changed and continue to exclude contribution from the now divested S2S and planned divestiture of Contigo, through we have updated our assumptions for target enterprise value following this morning's announcement. Previously, our valuation
assumed ~$225M cash proceeds for the planned sale of S2S. With the announcement this morning, we assume the addition of ~$70M in investment in unconsolidated affiliates to account for the additional 20% direct interest with Prestige ($298.6M total investment in unconsolidated affiliates inclusive of the $228.6M balance at the end of 4QFY'24). We continue to assume $40M future proceeds for the planned divestiture of Contigo Health and account for the $42.4M final OMNIA proceeds payment received in 1Q disclosed on the 4Q call in August in addition to the $125.1M cash reported at the close of 4Q in June. We continue to believe there could be value in PINC shares as the company focuses on core functions, but we remain on the sidelines for the time being as the company works through the noise of negative growth optics from realized and planned divestitures in addition to headwinds from rising fee share in GPO business."

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