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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 under 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 last leg down in price share backs.
Premier guided FY25 under consensus with a greater-than-expected stress on GPO admin price 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 imagine that because of its strategic assessment, the corporate is enhancing its strategic focus with the sale of underperforming subsidiaries whereas returning worth to shareholders underneath a $1B share repurchase authorization with $400M accomplished to this point 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 date this 12 months, whereas the broader S&P 500 market has gained 18%.
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Source: Seekingalpha