Analyst Update: Premier Inc, Allscripts Healthcare Solutions Inc, and Puma Biotechnology Inc

Analysts revised their ratings and price targets on Premier Inc (PINC), Allscripts Healthcare Solutions Inc (MDRX), and Puma Biotechnology Inc (PBYI)

Aug 23, 2016 at 1:42 PM
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Analysts are weighing in on healthcare company Premier Inc (NASDAQ:PINC), medical software stock Allscripts Healthcare Solutions Inc (NASDAQ:MDRX), and biotech Puma Biotechnology Inc (NYSE:PBYI)Here's a quick roundup of today's brokerage notes on PINC, MDRX, and PBYI.

  • PINC is down 7.4% at $31.26 -- and could suffer its steepest intraday slide ever -- after reporting weaker-than-expected earnings and subsequently getting slapped with a couple of negative analyst reactions. Evercore ISI cut PINC to "hold" from "buy," while Baird and Barclays both cut their price targets to $39 from $41. However, Citigroup raised its price target on the healthcare stock to $40 from $38, while Raymond James raised its price target to $38 from $36. Premier Inc now sits down more than 10% for the year, with the stock's 50-week moving average emerging as resistance, and the $30-$31 area containing several stumbles since the beginning of 2016. There could be more negative analyst attention on the way, though; 12 of 13 analysts maintained a "buy" or better rating on the stock, without a single "sell" in sight.
  • MDRX is up 2.8% at $13.03, after an upgrade to "outperform" from "market perform" and a price-target hike to $17 from $16 at Leerink. The brokerage firm pointed to the popularity of Allscripts Healthcare Solutions Inc's Touchworks and Sunrise platforms, predicted more than 20% year-over-year growth for adjusted 2016 and 2017 earnings, and said MDRX is "becoming a more attractive acquisition candidate." MDRX is still down over 15% in 2016, despite the increasing amounts of analyst optimism. Option bulls are likely cheering this latest move upward, given the heavy bullish betting at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), where traders have bought to open over 20 calls for every put over the last 50 sessions.
  • PBYI is up 2.1% at $55.77, a day after the company said its Marketing Authorization Application (MAA) for breast cancer drug neratinib was validated and is currently under assessment by the European Medicines Agency. Today, meanwhile, RBC upped its price target on PBYI to $57 from $46. The biotech has recovered by over 180% since touching a three-year low of $19.74 in May, and PBYI is set to close above its 50-week moving average trendline for the first time since May 2015. A few option players are likely kicking rocks, though, with Puma Biotechnology Inc's 10-day ISE/CBOE/PHLX put/call volume ratio of 1.81 sitting in the 80th percentile of its annual range.
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