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Investing.com - Raymond James raised its price target on Phreesia Inc. (NYSE:PHR) to $33.00 from $30.00 while maintaining an Outperform rating. According to InvestingPro data, the stock currently trades near its Fair Value, with analysts setting targets between $29 and $38.
Phreesia announced its largest acquisition to date, a $160 million purchase of AccessOne, a receivables financing platform managing a $450 million portfolio. The deal is expected to close in the second half of fiscal year 2026 and should add approximately $35 million in annual revenue and $11 million in EBITDA. InvestingPro data shows the company operates with moderate debt levels and maintains strong liquidity with a current ratio of 2.12.
The acquisition is valued at approximately 14.5 times EBITDA and will be financed largely by cash and a new bridge loan. The stock fell 11.5% after market as the deal came as a surprise to investors who had been told the company wouldn’t pursue significant M&A in the near term.
Phreesia ended the quarter with 4,467 average provider clients, representing 7% year-over-year growth, while revenue per Average Healthcare Services Client grew to $26,200, also up 7% year-over-year. The company reported its first positive GAAP earnings per share of $0.01. Overall revenue growth reached 15.31% with an impressive gross margin of 68.02%. Get deeper insights into Phreesia’s financial health and growth potential with InvestingPro’s comprehensive research report, part of its coverage of 1,400+ US stocks.
On the product development front, Phreesia launched several new tools including VoiceAI, AI-assisted referrals, and Out-of-Network Tags, all designed to reduce labor costs and streamline workflows for healthcare providers.
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, surpassing the expected -$0.06, and a revenue increase of 15% year-over-year to $117.3 million, exceeding the forecast of $116.54 million. This performance has led to analyst firms revising their outlook on the company. DA Davidson has assumed coverage with a Buy rating and a price target of $33.00, reflecting confidence in Phreesia’s financial health. Canaccord Genuity increased its price target to $38.00, citing an expansion in the company’s total addressable market to approximately $24 billion. Needham also raised its price target to $35.00 following the company’s acquisition of AccessOne, which contributed to the positive earnings surprise. The acquisition is part of Phreesia’s strategy to enhance its Payment Solutions offerings, further increasing its market potential. These developments indicate a positive trajectory for Phreesia as it continues to grow its core business and expand its market reach.
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