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Fly News Breaks for May 23, 2016
PINC
May 23, 2016 | 07:15 EDT
SunTrust says that Premier's stock has dropped about 10% since it reported its Q3 results. The firm thinks that the stock declined because of a decrease in the company's Q3 Performance Services revenue. However, the firm says that Performance Services only accounts for 29% of the company's overall revenue, while its Supply Chain sales, which generates 71% of its top line, actually rose last quarter. Moreover, the firm says that the company's EBITDA beat expectations, and SunTrust expects its EBITDA to continue to rise by low double digit percentage levels. SunTrust reiterates a Buy rating on the shares.
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