Phreesia, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Ryan MacDonald from Needham reiterated a Buy rating on the stock and has a $35.00 price target.
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Ryan MacDonald has given his Buy rating due to a combination of factors that highlight Phreesia’s strong financial performance and strategic growth initiatives. The company recently exceeded expectations in the second quarter, primarily through effective expense management, which resulted in an increase in the projected EBITDA for fiscal year 2026. This positive trend is anticipated to continue into the third quarter, particularly with contributions from Network Solutions expected to drive a topline beat.
Additionally, Phreesia’s acquisition of AccessOne is seen as a strategic move that could enhance growth synergies, especially in terms of improving margins and expanding the core business into AccessOne’s client base. The focus will also be on the addition of provider clients, revenue growth per AHSC, and the balance of organic and inorganic growth as the company approaches fiscal year 2027. With the stock trading at a relatively low multiple of the consensus revenue estimates for FY27, the current valuation presents an attractive risk/reward opportunity for investors.
MacDonald covers the Technology sector, focusing on stocks such as Duolingo, Liveperson, and Docebo. According to TipRanks, MacDonald has an average return of -2.2% and a 40.96% success rate on recommended stocks.