Phreesia (PHR – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Aaron Kimson from JMP Securities maintained a Buy rating on the stock and has a $30.00 price target.
Aaron Kimson has given his Buy rating due to a combination of factors that highlight Phreesia’s strong market position and financial performance. The company reported better-than-expected results for the fourth quarter of fiscal year 2025, with significant growth in non-GAAP EPS and adjusted EBITDA, which exceeded consensus estimates. This positive performance was reflected in a 3% increase in the stock price, despite a year-to-date decline.
Phreesia’s guidance for fiscal year 2026 remains robust, with expectations of continued revenue growth and margin expansion. The company is seen as a leading brand in the healthcare sector, facilitating a significant portion of patient visits in the U.S. and maintaining relationships with top pharmaceutical companies. Additionally, Phreesia’s network solutions revenue has shown strong sequential growth, contributing to margin improvements. The company’s consistent generation of free cash flow further supports the positive outlook, despite some concerns about longer-term growth. These factors, combined with the stock’s current valuation, underpin Kimson’s Buy rating.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $33.00 price target.
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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