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Summary

  • Analysts retained their ‘Buy’ rating on Phreesia Inc. (NYSE: PHR) post the release of the company’s financial results for Q1’24.
  • The mean consensus price target on PHR of US$ 39 marks an 18.54% upside potential over its closing price of US$ 32.9 on June 5, 2023.
  • Phreesia reported a total revenue of US$ 83.8 million for the April 2023 quarter.

Analysts suggest investing in Phreesia Inc. (NYSE: PHR) post the release of its financial results for Q1 2024. For the three months ended April 30, 2023, Phreesia reported a total revenue of US$ 83.8 million. The mean recommendation for PHR is 1.6 on a scale of one to five. Here, one represents ‘Strong Buy’ rating and five represents ‘Strong Sell’ rating.

As per data available on EODHD/Others, eight analysts have given a ‘Strong Buy’ recommendation to PHR, six analysts have given it a ‘Buy’ recommendation and two have given it a ‘Hold’ recommendation. There are no ‘Sell’ or ‘Strong Sell’ recommendations on the stock as of June 6, 2023.

Phreesia is a software solutions provider for the healthcare industry. The company’s SaaS-based platform allows healthcare companies to manage patient access, registration, payments and other related processes.

PHR price Chart; Image Source: EODHD/Others

The mean consensus price target on PHR is US$ 39, an 18.54% upside potential over its closing price of US$ 32.9 on June 5, 2023. Earlier this year, PHR hit its 52-week high of US$ 40 on February 2, 2023.

Analyzing PHR’s price target

Phreesia obtained an overall ‘Strong Buy’ rating as per data available on EODHD/Others. Post the release of Phreesia’s financial results on May 31, 2023, analysts retained their ‘Buy’ recommendations on the stock. Notably, Stephens Inc. and Guggenheim Securities retained their ‘Buy' ratings, and Keybanc Capital Markets maintained an ‘overweight’ rating on PHR.

Among other brokers covering the stock, JMP Securities retained a ‘Market Outperform’ rating on the stock, while the stock retainedan ‘Outperform’ rating from Raymond James and William Blair & Company. 

Image source: ©2023 Kalkine®; Data source: PHR EODHD/Others

Alternatively, SVB Securities upgraded its rating on the stock to ‘Outperform’ on June 1, 2023. The broker’s price recommendation on the stock was US$ 39, an upside potential of 18.54% over PHR’s closing price of US$ 32.9 on June 5, 2023.

Stephens Inc. gave the stock a price target of US$ 37, Keybanc Capital Markets Inc gave it a price target of US$ 40 and Guggenheim Securities gave it a price target of US$ 40.

Phreesia’s financial performance

For the first fiscal quarter ended April 30, 2023, Phreesia reported a total revenue of US$ 83.8 million, an increase of 32% over the same quarter previous year. Phreesia also reported an increase in the average number of healthcare service clients by 31% over Q1 2023.

The cash and cash equivalents as of April 30, 2023 was reported to be US$ 149.8 million. The company expects revenue to be between the range of US$ 353 million and US$ 356 million in the full fiscal year 2024. This would correspond to a year-over-year growth of 26% to 27%.

While Phreesia’s adjusted EBITDA was negative US$ 13.8 million in the quarter, it expects adjusted EBITDA to be in the range of negative US$ 60 million and negative US$ 55 million for fiscal 2024.