UPDATE: Piper Jaffray Initiates Coverage on Premier on Sustainability Concerns

In a report published Monday, Piper Jaffray analyst Sean W. Wieland initiated coverage on Premier PINC with a Neutral rating and $30.00 price target. In the report, Piper Jaffray noted, “Premier is a nationwide alliance of 2900 hospitals united by the common goal of improving the quality of care while reducing costs. The supply chain services segment is a GPO, which boasts exceptional fundamentals, but we have concerns regarding sustainability. The performance services segment is an interesting play on big data that we believe has ample room to grow. Using a sum of the parts approach to value the business, we are initiating with a neutral rating, $30 price target.” Premier closed on Friday at $31.66.