Bank of America just raised its EUR/USD forecast
On Thursday, DA Davidson maintained a positive outlook on Phreesia Inc . (NYSE:PHR) shares, reiterating a Buy rating and a $36.00 price target. The endorsement follows Phreesia’s fourth-quarter fiscal year 2025 results, which aligned with the firm’s expectations in terms of business conditions, fiscal year 2026 guidance, and key performance indicators (KPIs) related to profitability. According to InvestingPro data, the company has demonstrated strong revenue growth of 19.91% over the last twelve months, with 8 analysts recently revising their earnings expectations upward for the upcoming period.
Phreesia’s approach to adding value within the U.S. healthcare services sector was highlighted as a key factor in DA Davidson’s continued support. The analyst firm believes that Phreesia’s stock is currently undervalued, noting that it trades at a bottom quartile EBITDA valuation of 19 times, despite fundamentals that suggest a valuation closer to the peer median of 24 times. This assessment aligns with InvestingPro’s Fair Value analysis, which indicates the stock is currently undervalued, while maintaining a healthy gross profit margin of 67.14%.
The analyst’s comments underscored Phreesia’s consistent performance and the potential for significant improvement in profits. Phreesia’s strategy, which focuses on a three-way approach to creating value, was particularly praised for its effectiveness in the niche market of U.S. healthcare services. InvestingPro analysis reveals the company maintains a strong current ratio of 1.74 and operates with a moderate debt level, suggesting financial stability despite current non-profitability.
DA Davidson’s reaffirmation of the Buy rating indicates confidence in Phreesia’s business model and future prospects. The firm’s assessment suggests that Phreesia’s shares present an attractive opportunity for investors, with the current valuation being lower than what DA Davidson considers reflective of the company’s true worth.
The price target of $36.00 set by DA Davidson implies a level of performance and growth that Phreesia is expected to achieve. This target is based on the firm’s analysis of Phreesia’s financials and market position, reinforcing the belief that the company’s stock has the potential to reach a higher valuation in line with its peers.
In other recent news, Phreesia Inc. reported its fourth-quarter earnings for fiscal year 2025, surpassing analysts’ expectations with an earnings per share (EPS) of -$0.11 against a forecasted -$0.15. The company’s revenue for the quarter was $109.7 million, slightly above the forecast of $108.92 million, marking a 15% year-over-year increase. Canaccord Genuity responded to these results by raising its price target for Phreesia to $35.00 from $34.00, maintaining a Buy rating due to the company’s durable revenue and improving cash flow profile. Phreesia achieved an adjusted EBITDA of $36.8 million for the year, surpassing previous guidance and estimates, and marking the first year of positive adjusted EBITDA since FY’21. The company’s Gross Profit Margin on Subscription and Network revenue reached 80.6% in the fourth quarter, an increase of 320 basis points year-over-year. Phreesia’s platform, involved in approximately 14% of all doctor visits in the U.S., continues to drive growth through its Network Solutions business, contributing to higher margins and strong operating leverage. Looking ahead, Phreesia projects fiscal year 2026 revenue between $472 million and $482 million, with adjusted EBITDA expected to range from $78 million to $88 million. The company plans to focus on revenue growth and strategic acquisitions, leveraging AI to improve workflows and forecasting.
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