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Investing.com - Needham has raised its price target on Phreesia Inc. (NYSE:PHR) to $35.00 from $29.00 while maintaining a Buy rating following the healthcare software company’s second-quarter earnings beat. The stock, currently trading at $31.21, has shown strong momentum with a 21% gain over the past six months.
Phreesia reported stronger-than-expected quarterly results, with expense management leading to another EBITDA guidance raise for fiscal year 2026. The company’s core business continues to perform well, with year-over-year average revenue per user (ARPU) growth offsetting a slowdown in new provider additions. Revenue growth stands at 15.3%, supported by an impressive 68% gross margin.According to InvestingPro, 4 analysts have recently revised their earnings estimates upward, suggesting growing confidence in the company’s outlook. Get access to 8 more exclusive ProTips and comprehensive analysis with InvestingPro.
Needham highlighted Phreesia’s recently announced $160 million acquisition of AccessOne, a receivables financing solution for health systems. This strategic acquisition adds $6 billion to Phreesia’s total addressable market (TAM).
The firm sees growth synergies available through multiple avenues: moving core Phreesia offerings upstream into AccessOne clients, bringing AccessOne solutions to existing Phreesia clients, or implementing both strategies simultaneously.
Needham views the AccessOne asset as a new margin-accretive growth vector that could further enhance Phreesia’s financial profile, supporting its continued Buy recommendation at current price levels.
In other recent news, Phreesia Inc . reported its financial results for the second quarter of fiscal year 2026, achieving its first positive net income. The company posted earnings per share of $0.01, which exceeded the anticipated loss of $0.06 per share, resulting in a notable positive surprise of 116.67%. Additionally, Phreesia’s revenue increased by 15% year-over-year, reaching $117.3 million, surpassing the projected $116.54 million. These financial milestones reflect a strong performance for the company. The results have been positively received by investors, as indicated by the stock’s movement following the announcement. The company did not report any mergers or acquisitions in the recent period. There was also no mention of analyst upgrades or downgrades from firms. These developments mark a significant moment for Phreesia as it continues to show financial improvement.
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