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Investing.com - Canaccord Genuity raised its price target on Phreesia Inc. (NYSE:PHR) to $38.00 from $34.00 on Friday, while maintaining a Buy rating on the healthcare technology company’s stock. The company, currently valued at $1.86 billion, has seen its stock trade near its 52-week high of $32.76, with a strong return over the past three months.
The price target increase follows Phreesia’s update to its total addressable market (TAM), which has expanded to approximately $24 billion, up from about $10 billion previously. The company increased its Network Solutions TAM by approximately $6 billion to $8.2 billion, while its Payment Solutions TAM also grew by approximately $6 billion to $9.1 billion, partly due to AccessOne’s financing solutions offerings. InvestingPro data shows the company maintaining impressive revenue growth of 15.31% over the last twelve months.
Phreesia has reported four consecutive quarters of positive free cash flow and achieved its first quarter of positive net income, signaling improving financial stability. The company’s adjusted EBITDA margins expanded 1,250 basis points year-over-year and 90 basis points quarter-over-quarter, demonstrating continued operating leverage. According to InvestingPro, the company maintains a healthy current ratio of 2.12, with liquid assets exceeding short-term obligations. InvestingPro Tips indicate that analysts expect net income growth this year, with 4 analysts recently revising their earnings estimates upward.
Canaccord highlighted Phreesia’s focus on artificial intelligence functionality integration to its platform as "very encouraging," noting management’s enthusiasm regarding initial client reception. The firm views the company’s growth outlook as promising, supported by both internally developed and acquired products offered to a growing healthcare provider base.
Canaccord recommends using the recent pullback in Phreesia’s stock as an opportunity to accumulate shares, citing the company’s favorable outlook and steadily improving financial trajectory.
In other recent news, Phreesia Inc . has 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 forecasted EPS of -$0.06, marking a positive surprise of 116.67%. Additionally, Phreesia’s revenue increased by 15% year-over-year, reaching $117.3 million and surpassing the expected $116.54 million. In a related development, Needham has raised its price target for Phreesia to $35.00 from $29.00, maintaining a Buy rating after the company’s earnings beat. This adjustment comes on the heels of Phreesia’s acquisition of AccessOne, which is anticipated to bolster its financial standing. The company’s successful expense management has led to another increase in EBITDA guidance for fiscal year 2026. Phreesia’s core business continues to show strength, with year-over-year average revenue per user growth compensating for a slowdown in new provider additions. These recent developments highlight Phreesia’s ongoing momentum in the healthcare software sector.
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