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Investing.com - JPMorgan maintained its overweight rating on Phreesia Inc . (NYSE:PHR) following a fireside chat with the company’s CFO Balaji Gandhi. The healthcare software company, currently valued at $1.66 billion, has seen its stock surge 8.61% in the past week, trading near $27.87.
The investment bank expressed encouragement about Phreesia’s fiscal year 2026 growth algorithm, which it believes provides a reasonable forward basis for the healthcare software company’s performance. According to InvestingPro data, the company maintains a robust gross profit margin of 68.02% and has achieved 16.29% revenue growth in the last twelve months.
JPMorgan noted Phreesia’s total addressable market (TAM) expansion opportunities as the company continues to invest in its platform development, potentially opening new revenue streams.
The firm highlighted that Phreesia’s revenue diversification strategy provides some insulation from macroeconomic challenges, creating a more resilient business model.
JPMorgan’s analysis comes amid what it described as "continued investor interest" in Phreesia, alongside the company’s "recent rapid ramp in profitability," factors that appear to be supporting the maintained overweight rating.
In other recent news, Phreesia Inc. reported its first-quarter earnings, showing strong financial performance that surpassed expectations. The company achieved $115.9 million in revenue, a 15% year-over-year increase, beating the consensus estimate of $114.9 million. Adjusted EBITDA reached $20.8 million, significantly surpassing the expected $16 million. In response, several firms have maintained their positive outlooks on Phreesia. Piper Sandler kept an Overweight rating with a $33 price target, acknowledging the company’s improved EBITDA forecast. Similarly, JPMorgan maintained an Overweight rating with a $30 target, highlighting Phreesia’s healthy revenue growth projections for fiscal year 2026. Canaccord Genuity adjusted its price target to $34 from $35, while still holding a Buy rating, noting the company’s strong growth and profitability metrics. DA Davidson also reiterated a Buy rating with a $34 target, emphasizing Phreesia’s potential for profit growth despite challenges in the Network Solutions segment. Raymond (NSE:RYMD) James maintained an Outperform rating with a $30 target, expressing confidence in the company’s strategic investments and financial discipline.
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