Bank of America just raised its EUR/USD forecast
On Thursday, Canaccord Genuity increased its price target for Phreesia Inc . (NYSE:PHR) shares to $35.00, up from the previous target of $34.00, while reiterating a Buy rating on the stock. The firm’s analyst, Richard Close, expressed confidence in Phreesia’s stock following the company’s fourth-quarter report, citing its durable revenue, expanding margins, and improving cash flow profile. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $28 to $36, suggesting potential upside from the current price of $23.80. The stock appears slightly undervalued based on InvestingPro’s Fair Value analysis.
Phreesia concluded a remarkable year with an adjusted EBITDA of $36.8 million, surpassing the high end of both guidance and estimates. This achievement marked the first year of positive adjusted EBITDA since FY’21, when the company reported $3.8 million. The growth in Phreesia’s healthcare service clients has been a significant factor in driving scale, but the Network Solutions business has seen even faster growth, contributing to higher margins. This has led to strong operating leverage and marked improvements in operating and free cash flow, now positive for three consecutive quarters. InvestingPro data reveals impressive revenue growth of 19.91% over the last twelve months, with total revenue reaching $405 million. Get access to 8 additional ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports.
In the fourth quarter, Phreesia’s Gross Profit Margin (GPM) on Subscription and Network revenue reached 80.6%, an increase of 320 basis points year-over-year and the first time it has surpassed the 80% threshold. The overall gross profit margin stands at 67.14% according to InvestingPro data. The company’s platform, which is estimated to be involved in 14% of all doctor visits in the U.S., equating to approximately 170 million visits, offers a unique and targeted channel for life science companies and other organizations to engage with patients.
Phreesia’s focus on privacy and consent has been central to its marketing campaigns, including one that successfully encouraged over 1 million women to complete breast cancer screenings, resulting in a 12% increase in screenings among women exposed to the campaign. The company’s steady growth in average new clients, which rose 16.7% in FY’25, and the launch of new products like Appointment Readiness, are expected to further enhance patient engagement. While currently unprofitable, analysts tracked by InvestingPro expect the company to achieve profitability this year, with projected earnings per share of $0.09.
Canaccord Genuity anticipates that Phreesia’s financial profile will continue to improve in the coming years, as the company has reached an inflection point in adjusted EBITDA and free cash flow. The analyst’s outlook suggests a strong trajectory for Phreesia’s growth and profitability.
In other recent news, Phreesia Inc reported its fourth-quarter earnings for fiscal year 2025, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of -$0.11, which was better than the forecasted -$0.15. Phreesia’s revenue for the quarter reached $109.7 million, slightly exceeding the anticipated $108.92 million and marking a 15% increase from the previous year. The company also reported an adjusted EBITDA of $16.4 million, a significant improvement from the prior year, and maintained a positive free cash flow of $9.2 million. Additionally, Phreesia’s cash position increased to $84.2 million, up by $2.5 million from October 2024. Despite the positive earnings results, Phreesia’s stock experienced a decline in after-hours trading. The company is optimistic about its future, projecting fiscal year 2026 revenue between $472 million and $482 million and focusing on strategic acquisitions and revenue growth. Phreesia continues to innovate, implementing AI to enhance workflows and forecasting, as highlighted by CEO Haim Indig.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.