Phreesia (PHR – Research Report), 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.
Richard Close has given his Buy rating due to a combination of factors including Phreesia’s strong performance in beating consensus on adjusted EBITDA for the last 12 consecutive quarters. This consistent outperformance, coupled with disciplined operating expense control and solid double-digit revenue growth, suggests a positive outlook for the company’s financial health.
Furthermore, Close highlights the potential for significant margin expansion, with expectations for adjusted EBITDA margins to increase substantially in the coming fiscal year. Additionally, the company’s valuation appears undervalued compared to similar firms in the private market, suggesting room for growth as Phreesia continues to execute its strategy. The focus on higher-margin Network Solutions and the benefits from AI adoption are also seen as key drivers for future growth, reinforcing the Buy recommendation.
Based on the recent corporate insider activity of 160 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PHR in relation to earlier this year.
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