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Investing.com - Mizuho initiated coverage on Phreesia Inc. (NYSE:PHR) with an Outperform rating and a $36.00 price target, representing approximately 20% upside potential. The stock, currently trading at $30.80 and near its 52-week high of $31.46, has shown strong momentum with an 11% gain in the past week. According to InvestingPro data, the company maintains a healthy gross margin of 68%.
The investment firm identifies Phreesia as a leader in Patient Intake Management software for medical practitioners, primarily physicians, with a growing installed base.
Mizuho highlights the company’s ability to monetize its solutions through pharmaceutical digital marketing spend toward patients who engage with the intake software, which Phreesia recognizes as "Network Solutions" revenue.
The firm notes this monetization strategy has accelerated post-Covid, enabling Phreesia to generate EBITDA margins of 18-19% this year after several years of EBITDA losses, with potential for further expansion in calendar years 2026-2028 driven by 15-20% compound annual growth rate for Network Solutions revenue.
Phreesia currently trades at approximately 14 times calendar year 2026 estimated EBITDA compared to the healthcare information technology peer average of about 17 times, according to Mizuho’s analysis.
In other recent news, Phreesia Inc . has been the subject of multiple analyst reviews and strategic developments. Canaccord Genuity adjusted its price target for Phreesia to $34 from $35, maintaining a Buy rating despite mixed results from the first-quarter earnings report. The company experienced a 16% growth rate in the Subscription and services segment, bolstered by $1 million in non-recurring revenue, translating to a 14% growth without this one-time benefit. DA Davidson also reaffirmed its Buy rating, highlighting Phreesia’s improved per-client economics and potential for significant profit growth, despite some softness in the Network Solutions segment.
KeyBanc Capital Markets reiterated an Overweight rating with a $35 price target, pointing to growth catalysts such as progress in signing large specialty provider networks. JPMorgan echoed this sentiment, maintaining an Overweight rating after discussions with Phreesia’s CFO about the company’s 2026 growth algorithm. Additionally, Phreesia announced a five-year collaboration with Sesame Workshop to engage parents during medical visits, using Sesame Street characters to deliver health education. These developments reflect Phreesia’s strategic efforts to enhance its digital health platform and expand its market presence.
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