Bank of America just raised its EUR/USD forecast
Monday, Truist Securities maintained a Buy rating on Phreesia Inc . (NYSE: NYSE:PHR) with a steady price target of $34.00. Trading at $22.36, InvestingPro data shows the stock is currently undervalued. The firm’s analyst highlighted the upcoming FY4Q25 earnings report, scheduled for Wednesday, March 12, after market close. Supporting the optimistic outlook, eight analysts have recently revised their earnings estimates upward for the upcoming period, with consensus targets ranging from $28 to $36.
Phreesia has garnered positive investor sentiment over the last 18 to 24 months, with expectations pointing towards an improvement in adjusted EBITDA margins. These margins are projected to shift from a negative 16.4% in FY1Q24 to an estimated positive 13% in FY4Q25. This significant margin enhancement underscores the strong operating leverage inherent in Phreesia’s business model, supported by its healthy gross profit margin of 67.14% and robust revenue growth of 19.91% over the last twelve months.
Despite the optimism surrounding the company’s margin trajectory, concerns regarding the growth of Phreesia’s top-line revenue remain. The analyst’s commentary suggests that while the company has made strides in profitability, the pace of revenue growth continues to be an area watched closely by investors. Get deeper insights into Phreesia’s financial health and growth prospects with InvestingPro, which offers exclusive access to detailed financial metrics and expert analysis through comprehensive Pro Research Reports.
The upcoming earnings report will be a focal point for the market, as it will provide further insight into the company’s financial performance and its ability to maintain the positive trends in margin improvement. Phreesia’s guidance for FY26 will also be scrutinized for indications of the company’s confidence in its growth and profitability prospects.
Investors and stakeholders in Phreesia will be looking to the March 12 earnings call for confirmation of the company’s performance against the backdrop of the analyst’s expectations and the broader market’s anticipation.
In other recent news, Phreesia Inc. has been the focus of several analyst updates and financial assessments. RBC Capital Markets upgraded Phreesia’s stock from Sector Perform to Outperform, raising the price target to $32, citing strong potential for margin expansion and improved revenue per client. Piper Sandler also adjusted its price target for Phreesia to $33, maintaining an Overweight rating, based on expectations of positive results from internal investments and a projected inflection in adjusted EBITDA by fiscal year 2026. Meanwhile, Baird maintained an Outperform rating but adjusted its price target to $30, noting Phreesia’s 17% year-over-year revenue growth and improved EBITDA margins.
The company’s fiscal year 2026 revenue is expected to increase by 13-15%, with EBITDA margins projected to reach 17%, significantly exceeding consensus expectations. Baird highlighted Phreesia’s focus on profitability, with EBITDA for fiscal year 2026 anticipated to be between $78 million and $88 million, surpassing the consensus estimate of $60 million. Piper Sandler emphasized Phreesia’s strategic capital allocation and execution as key factors for achieving durable growth, aligning with the "Rule of 40" principle. These recent developments underscore the financial community’s attention to Phreesia’s evolving strategies and financial performance.
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