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On Wednesday, JPMorgan reaffirmed its positive stance on Phreesia Inc . (NYSE: NYSE:PHR), maintaining an Overweight rating and a $30.00 price target. According to InvestingPro data, the healthcare technology company, currently valued at $1.4 billion, appears undervalued based on its Fair Value analysis. The endorsement follows Phreesia’s financial results for the first quarter, which surpassed Wall Street’s expectations. The healthcare technology company reported $115.9 million in revenue, a 15% increase year-over-year, outperforming the consensus estimate of $114.9 million. The company also reported an EBITDA of $20.8 million, exceeding the Street’s forecast of $16.7 million. With a robust revenue growth rate of 17.8% over the last twelve months and an overall "GOOD" Financial Health score from InvestingPro, the company shows strong operational momentum.
Phreesia has reiterated its revenue outlook for fiscal year 2026, projecting between $472 million and $482 million, aligning with analysts’ expectations of around $475 million. This forecast suggests a healthy top-line growth rate of 12-15%. Additionally, the company has raised its EBITDA guidance to $85-90 million, up from the previous range of $78-88 million, indicating an EBITDA margin of approximately 18%. InvestingPro analysis reveals that three analysts have recently revised their earnings estimates upward, with analyst targets suggesting up to 28% potential upside. For deeper insights into Phreesia’s growth trajectory and comprehensive financial analysis, subscribers can access the detailed Pro Research Report, available exclusively on InvestingPro.
The company’s client base grew by about 9% year-over-year during the quarter. Revenue from Network Solutions saw a 15% increase, while payments revenue grew by 11%. Notably, Phreesia achieved a 6% year-over-year rise in revenue per Average Healthcare Service (NASDAQ:HCSG) Client (AHSC), coupled with a significant EBITDA margin expansion, despite facing a one-time interchange fee challenge during the quarter.
In summary, the updated EBITDA guidance suggests that Phreesia is on track to nearly double its EBITDA margin from around 9% in fiscal year 2025 to 18%. This performance and the optimistic financial outlook underscore JPMorgan’s continued confidence in Phreesia’s stock.
In other recent news, Phreesia Inc. reported its first-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of -$0.07 compared to the forecasted -$0.12. The company achieved a 15% year-over-year revenue increase, reaching $115.9 million, slightly above the anticipated $114.92 million. Following the earnings announcement, Phreesia raised its adjusted EBITDA guidance for the full year to a range of $85-$90 million, reflecting confidence in its ongoing initiatives. Citi analyst Daniel Grosslight maintained a Buy rating on Phreesia while adjusting the stock’s price target from $35 to $33, citing fundamentally solid financial results despite some areas underperforming. Phreesia’s Network Solutions segment experienced slower growth, but this was offset by stronger Subscription and Payments revenue. The company continues to expand its client base, adding 70 new healthcare services clients this quarter, driven by its focus on product innovation and AI integration. Additionally, Phreesia maintained its revenue guidance for FY26, projecting a growth of 12%-15%. The company’s strategic focus on AI and product development supports its trend of exceeding earnings forecasts.
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