Phreesia, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Richard Close from Canaccord Genuity maintained a Buy rating on the stock and has a $34.00 price target.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Richard Close has given his Buy rating due to a combination of factors that highlight Phreesia’s potential for sustained growth and profitability. Despite a temporary setback in the Network Solutions segment, the company’s overall revenue growth and adjusted EBITDA performance have exceeded expectations, indicating strong operational leverage. Close anticipates a re-acceleration in Network Solutions revenue growth, supported by robust demand in other segments like payment processing fees and provider subscriptions.
Moreover, Phreesia’s innovative offerings, such as the new VoiceAI solution, demonstrate its capability to enhance operational efficiency and reduce costs for healthcare providers. This innovation, coupled with the company’s track record of consistently beating consensus estimates, positions Phreesia well for future growth. Close also notes the potential for multiple expansion as Phreesia continues to deliver durable and profitable growth, making it an attractive investment opportunity even as it approaches the current price target.
In another report released on August 27, Mizuho Securities also initiated coverage with a Buy rating on the stock with a $36.00 price target.
PHR’s price has also changed moderately for the past six months – from $26.540 to $32.550, which is a 22.65% increase.