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On Wednesday, Piper Sandler, a financial services firm, maintained its Overweight rating on Phreesia Inc . (NYSE:PHR) shares, with a price target of $33.00. This decision followed the company’s release of its first-quarter earnings, which surpassed consensus estimates for both revenue and adjusted EBITDA. According to InvestingPro data, the company appears undervalued at its current market capitalization of $1.39 billion, with three analysts recently revising their earnings estimates upward.
Phreesia, a company that provides patient intake management solutions for healthcare providers, reported solid financial performance, prompting Piper Sandler to encourage investment in the stock. The firm’s analysts highlighted Phreesia’s strong quarterly results and increased guidance for fiscal year 2026, where the adjusted EBITDA forecast rose by $4.5 million to a midpoint of $87.5 million. This adjustment suggests an 18.3% margin, an improvement from the previous 17.4%. InvestingPro data shows impressive revenue growth of 17.8% over the last twelve months, with a healthy gross profit margin of 67.9%.
The firm’s analysts emphasized Phreesia’s integral role in the healthcare procurement process, noting that the company generates revenue from all stakeholders involved. Phreesia’s integration with 35 electronic health record systems (EHRs) and contracts with 4,411 ambulatory healthcare service centers (AHSCs) were mentioned as key factors in its success. Moreover, Phreesia’s platform is reportedly involved in over 14.0% of U.S. ambulatory visits.
Piper Sandler expressed confidence in Phreesia’s potential to enhance clinical outcomes and reduce costs through patient engagement and behavior change, as the company’s scale begins to create network effects. The analysts believe that Phreesia’s unique position in the market has both fundamental and strategic value, presenting multiple opportunities for shareholders in the near term.
The firm’s endorsement of Phreesia’s stock reaffirms its positive outlook on the company’s growth prospects and operational execution. Piper Sandler’s reiterated Overweight rating and $33 price target reflect their assessment of Phreesia’s current performance and future potential in the healthcare industry. InvestingPro analysis reveals a "GOOD" overall financial health score, with analysts expecting profitability this year. For deeper insights into PHR’s valuation and growth potential, including additional ProTips and comprehensive financial analysis, check out the full Pro Research Report available on InvestingPro.
In other recent news, Phreesia Inc. reported a strong performance in its first-quarter 2025 earnings, surpassing Wall Street’s expectations. The company recorded $115.9 million in revenue, marking a 15% increase year-over-year, and exceeded the consensus estimate of $114.9 million. Phreesia’s earnings per share (EPS) came in at -$0.07, beating the analyst forecast of -$0.12. Adjusted EBITDA reached $20.8 million, surpassing estimates by $3 million to $4 million, thanks to efficiencies in selling, general, and administrative expenses. The company has raised its adjusted EBITDA guidance for the full year to a range of $85 million to $90 million, reflecting confidence in its financial trajectory. Citi analyst Daniel Grosslight maintained a Buy rating on Phreesia’s stock, although he adjusted the price target to $33 from $35, citing fundamentally solid financial results. Meanwhile, JPMorgan reaffirmed its positive stance on Phreesia, maintaining an Overweight rating with a $30 price target, underscoring continued confidence in the company’s stock. Phreesia continues to invest in AI and product innovation, which are central to its strategy of enhancing client solutions and operational efficiency.
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