Phreesia’s Strong Financial Performance and Growth Potential Justifies Buy Rating

Analyst Glen Santangelo of Jefferies maintained a Buy rating on Phreesia (PHR – Research Report), with a price target of $28.00.

Glen Santangelo has given his Buy rating due to a combination of factors that highlight Phreesia’s strong financial performance and growth potential. The company reported a revenue of $109.7 million, which slightly exceeded the consensus estimate of $108.9 million, driven by significant growth in both Subscription and Network Solutions segments. Additionally, Phreesia’s EBITDA of $16.4 million surpassed expectations, marking the fourth consecutive quarter of profitability and showcasing a notable improvement in margin.
Moreover, the average number of healthcare clients increased by 10% year-over-year, with revenue per client also rising by 5%. Despite a lower number of client additions compared to the previous quarter, management’s confidence in maintaining guidance for revenue and adjusted EBITDA suggests a positive outlook. The expectation of increased total revenue per client in the upcoming fiscal year further supports the Buy rating, indicating continued operational success and potential for share price appreciation.

In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $33.00 price target.

PHR’s price has also changed slightly for the past six months – from $23.760 to $23.800, which is a 0.17% increase.