Needham analyst Ryan MacDonald reiterated a Buy rating on Phreesia (PHR – Research Report) today and set a price target of $29.00.
Ryan MacDonald has given his Buy rating due to a combination of factors including Phreesia’s strong finish to FY24 and their continued emphasis on profitable growth. The company has articulated a clear go-to-market strategy that focuses on attracting high-value Automated Health System Check-in (AHSC) prospects to drive more profitable growth in the future. MacDonald acknowledges potential investor concerns regarding a growth model that leans more heavily on revenue per AHSC expansion rather than on net new customer additions. However, he points out that Phreesia is confident in its ability to generate a balanced mix of both, especially with the cross-selling of newly developed or acquired modules to their existing customer base.
Furthermore, MacDonald highlights that the adjusted EBITDA expansion is a primary goal for Phreesia in FY25. The company has identified additional operational expense leverage opportunities, suggesting that Phreesia is positioning itself to consistently outperform profitability expectations. This potential for a ‘beat and raise’ pattern in profitability, along with Phreesia’s current discounted valuation at 2.7 times FY25 sales, presents an attractive investment opportunity, in MacDonald’s view. Consequently, he maintains a Buy rating and a $29 price target on PHR stock, signaling confidence in the company’s financial prospects and valuation appeal.
According to TipRanks, MacDonald is a 5-star analyst with an average return of 8.5% and a 49.03% success rate. MacDonald covers the Technology sector, focusing on stocks such as Zeta Global Holdings Corp, Liveperson, and Chegg.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $28.00 price target.
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Phreesia (PHR) Company Description:
Phreesia, Inc. provides patient check-in solutions for medical practices. It provides solutions that transform the healthcare experience by engaging patients in their care and enabling healthcare provider organizations to optimize operational efficiency, improve profitability and enhance clinical care. Through the SaaS-based Phreesia Platform the company offers healthcare provider organizations a robust suite of solutions to manage the patient intake process and a payments solution for secure processing of patient payments. Its platform also provides life sciences companies with an engagement channel for targeted and direct communication with patients. Phreesia was founded by Chaim Indig and Evan Roberts in January 2005 and is headquartered in New York, NY.
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