On Friday, Citi maintained a positive outlook on Phreesia Inc . (NYSE:PHR), raising the price target on the healthcare technology firm's shares to $30 from $27, while reiterating a Buy rating. The adjustment follows Phreesia's recent earnings release, which reported revenue and adjusted EBITDA figures surpassing expectations.
The company's solid quarterly performance, highlighted by a year-over-year increase of 6% in subscription revenue per adjusted healthcare service client (AHSC) and a 5% rise in non-subscription (NS) revenue per visit, was a key factor in the analyst's reassessment.
These results support the belief in Phreesia's potential to execute its profitable growth strategy, aiming for over 20% growth while achieving profitability within the year.
The analyst's confidence is bolstered by management's commentary and subsequent discussions, which underscore Phreesia's trajectory towards significant profitability. The firm's ability to leverage general and administrative expenses is seen as a catalyst for margin expansion.
Looking forward, Citi expressed enthusiasm for Phreesia's capacity to monetize emerging products, such as the recently introduced Post-Script Engagement. This new offering is expected to find a market not only in life sciences but also in the pharmacy sector.
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