Phreesia stock price target raised to $32 at Jefferies

On Tuesday, Phreesia Inc . (NYSE:PHR), currently trading at $27.07, saw its price target increased by Jefferies from $28.00 to $32.00, with a maintained Buy rating on the company’s shares. The stock has shown remarkable momentum, gaining nearly 16% in the past week. The adjustment follows the firm’s analysis of Phreesia’s fourth-quarter earnings and recent remarks from the company’s management. According to InvestingPro data, the company appears slightly undervalued based on its Fair Value analysis.

The research firm’s decision to raise the target price is based on a reassessment of Phreesia’s financial model, taking into account the latest earnings data and management’s updated commentary. Supporting this outlook, the company has demonstrated solid revenue growth of 17.8% over the last twelve months, while maintaining a healthy gross profit margin of 67.9%. Jefferies expresses continued confidence in Phreesia’s growth prospects, citing expected operational leverage as the company scales and a shift in focus towards Network Solutions.

Jefferies analysts underscore their belief that Phreesia is on track to achieve significant operational leverage, which should contribute to the company’s financial performance as it expands. This perspective is supported by their estimates for Phreesia’s EBITDA, which remain higher than the consensus for fiscal years 2026 and 2027. InvestingPro analysis reveals the company maintains a moderate debt level with a debt-to-equity ratio of just 0.07, providing financial flexibility for growth initiatives.

Reiterating the Buy rating, Jefferies conveys optimism about Phreesia’s ability to capitalize on its business model and achieve the anticipated financial outcomes. The firm’s analysis suggests that Phreesia is well-positioned to continue its growth trajectory and benefit from the strategic shift towards Network Solutions.

Phreesia’s management has provided commentary that underpins the updated financial model and supports the raised price target. Jefferies’ stance reflects an expectation of continued strong performance from Phreesia, backed by a robust business strategy and operational scaling.

In other recent news, Phreesia Inc. reported its fourth-quarter fiscal year 2025 earnings, surpassing analysts’ expectations with an EPS of -$0.11 compared to the forecasted -$0.15. The company also exceeded revenue forecasts, reporting $109.7 million, marking a 15% year-over-year increase. DA Davidson reiterated a Buy rating on Phreesia, setting a price target of $36, while Canaccord Genuity raised its price target to $35, maintaining a Buy rating. Both firms highlighted Phreesia’s strong financial performance and strategic growth initiatives as reasons for their positive outlook.

KeyBanc Capital Markets maintained an Overweight rating with a $30 price target, emphasizing Phreesia’s margin improvement and growth potential in its Network Solutions sector. Raymond (NSE:RYMD) James also reiterated an Outperform rating with a $30 target, noting Phreesia’s shift towards a free cash flow-oriented narrative. The company’s focus on privacy and consent in marketing campaigns, such as those promoting breast cancer screenings, has been noted as a significant achievement.

Phreesia’s strategic use of AI to enhance workflows and forecasting was highlighted during its earnings call, with management expressing optimism about the technology’s impact on business operations. 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 continue its growth trajectory through organic expansion and potential strategic acquisitions.

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