Canaccord Genuity analyst Richard Close maintained a Hold rating on Premier yesterday and set a price target of $28.25.
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Richard Close’s rating is based on the recent announcement that Premier will be acquired by Patient Square Capital for $28.25 per share, which represents a significant premium over the stock’s recent trading price. This acquisition provides a favorable outcome for shareholders, especially given Premier’s recent struggles with asset divestitures and renegotiation of GPO contracts that have impacted revenue.
The acquisition price reflects a valuation that is competitive in the current market environment, particularly considering Premier’s negative revenue growth profile and the challenging conditions faced by companies in the healthcare sector. The transaction has been approved by Premier’s Board of Directors and is expected to close without significant obstacles. As such, Richard Close maintains a Hold rating, aligning the price target with the acquisition price, and sees limited near-term catalysts for the stock as a public entity.
According to TipRanks, Close is a 4-star analyst with an average return of 10.1% and a 48.46% success rate. Close covers the Healthcare sector, focusing on stocks such as Phreesia, Quipt Home Medical, and Clover Health Investments.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $31.00 price target.