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Healthcare companies supplier Premier Inc (NASDAQ:PINC) was downgraded to Hold from Buy at Benchmark on Monday after the corporate guided its FY25-26 outlook beneath Street estimates.
PINC is buying and selling down 2.7% premarket.
Research agency Benchmark thinks development in FY26 might be elusive relying on the offsets to a closing leg down in charge share backs.
Premier guided FY25 beneath consensus with a greater-than-expected strain on GPO admin charge share backs and a flattish outlook for Performance Services, Benchmark provides.
“Based on downwardly revised consensus and TBC models, Benchmark now thinks it’s likely that PINC treads water at current levels into next year, leading us to lower its rating to Hold from Buy.”
However, Benchmark says it additionally continues to consider that on account of its strategic assessment, the corporate is enhancing its strategic focus with the sale of underperforming subsidiaries whereas returning worth to shareholders below a $1B share repurchase authorization with $400M accomplished thus far and one other $200M simply underway. “If fully executed, the authorization could reduce outstanding shares by ~40%.”
PINC has shed 8% in inventory value to this point this yr, whereas the broader S&P 500 market has gained 18%.
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Source: Seekingalpha