PINC – Market expectations are for Uniform ROA to compress, and management is excited about expanding their business portfolio
July 23, 2018
- Premier Inc. (PINC:USA)currently trades at recent lows relative to UAFRS-based (Uniform) Assets, with a 10.8x Uniform P/E. At these levels, the market has bearish expectations for the firm. However, management is excited about their strategies for expanding the business to a platform strategy
- Management generated excitement and confidence about their business strategy and growth opportunities. In particular they were confident about their strategy to change into a platform company and how this will lead to an expanding customer portfolio, revenue opportunities, and new customer interests because of their unique capabilities. However, management may be concerned about near-term revenue growth sustainability, particularly for their legacy GPO business