Update shared on21 Aug 2025
Fair value Increased 9.56%Analysts have raised Premier’s price target to $24.83, citing strong Q4 results and improved fiscal 2026 estimates driven by higher demand for advisory and performance services, though ongoing net administrative fee pressure tempers further upside.
Analyst Commentary
- Bullish analysts are raising price targets due to better-than-expected Q4 results and an in-line fiscal 2026 outlook.
- Improved fiscal 2026 estimates reflect Premier's ability to offset net administrative fee pressure through growing demand for advisory and Performance Services.
- Analysts are revising up forecasts for Supply Chain Services revenue and stronger Performance Service margins.
- Persistent net administrative fee pressure is expected to remain a headwind to growth through 2026, limiting upside.
- Some analysts maintain a cautious stance owing to a lack of confidence in the company's ability to sustainably grow net admin fees.
What's in the News
- Premier plans to prioritize capital deployment on organic growth and potential tuck-in acquisitions.
- The company repurchased 1,824,452 shares for $39.3 million, completing $800 million in buybacks since the program's inception (38.76% of outstanding shares).
- Fiscal-year 2026 net revenue guidance (excluding Contigo Health) is set at $940 million to $1 billion.
- Premier secured a group purchasing agreement with AIS Healthcare for intrathecal compounded medications, offering members special pricing and quality assurance support.
- Premier was dropped from multiple Russell 1000 and Midcap indices and added to several Russell 2000 and related defensive/value indices.
Valuation Changes
Summary of Valuation Changes for Premier
- The Consensus Analyst Price Target has risen from $22.67 to $24.83.
- The Consensus Revenue Growth forecasts for Premier has significantly risen from 0.1% per annum to 1.1% per annum.
- The Future P/E for Premier has risen from 24.64x to 27.00x.
Disclaimer
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