Raymond James analyst John Ransom maintained a Buy rating on Phreesia today and set a price target of $33.00.
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John Ransom has given his Buy rating due to a combination of factors that highlight Phreesia’s strong financial performance and strategic growth initiatives. The company reported a modest revenue beat in the second fiscal quarter, with significant growth across its network solutions, subscription, and payment segments. Additionally, Phreesia’s adjusted EBITDA exceeded expectations, benefiting from lower sales and marketing expenses and general and administrative costs, despite increased investment in research and development.
Furthermore, Phreesia announced a significant acquisition of AccessOne, which is expected to enhance its payment processing capabilities and add substantial revenue and EBITDA. Despite the initial market reaction to the acquisition’s cost, the deal is anticipated to create synergies and strengthen Phreesia’s value proposition. The company’s continued client growth, innovative product launches, and strategic partnerships further support its long-term growth potential, making it an attractive investment opportunity.
Ransom covers the Healthcare sector, focusing on stocks such as Humana, GoodRx Holdings, and Acadia Healthcare. According to TipRanks, Ransom has an average return of 9.6% and a 59.39% success rate on recommended stocks.
In another report released today, D.A. Davidson also initiated coverage with a Buy rating on the stock with a $33.00 price target.