Citi's analyst Daniel Grosslight has revised Phreesia's (PHR, Financial) price target, lowering it to $33 from the previous $35, while maintaining a Buy rating on the stock. Although the company's first-quarter performance did not present any major concerns, the shares have dipped approximately 5%. This decline is linked to anticipated revenue outperformance in the current quarter.
Due to limited foresight, Citi has adjusted its revenue forecasts for Phreesia for fiscal years 2025, 2026, and 2027, leading to a minor downgrade in its adjusted EBITDA projections. This adjustment has consequently influenced a decrease in the price target for the stock.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Phreesia Inc (PHR, Financial) is $32.27 with a high estimate of $36.00 and a low estimate of $28.00. The average target implies an upside of 36.58% from the current price of $23.63. More detailed estimate data can be found on the Phreesia Inc (PHR) Forecast page.
Based on the consensus recommendation from 14 brokerage firms, Phreesia Inc's (PHR, Financial) average brokerage recommendation is currently 1.6, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Phreesia Inc (PHR, Financial) in one year is $35.63, suggesting a upside of 50.78% from the current price of $23.63. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Phreesia Inc (PHR) Summary page.
PHR Key Business Developments
Release Date: March 12, 2025
- Revenue: $109.7 million in Q4, up 15% year-over-year.
- Adjusted EBITDA: $16.4 million in Q4, up $19.9 million year-over-year.
- Adjusted EBITDA Margin: 15% in Q4.
- Average Healthcare Services Clients (AHSC): 4,341 in Q4, an increase of 104 from the prior quarter and 379 from the prior year.
- Total Revenue per AHSC: $25,266 in Q4, up 5% year-over-year.
- Operating Cash Flow: Positive $16.3 million in Q4, up $19.3 million year-over-year.
- Free Cash Flow: Positive $9.2 million in Q4, up $20.1 million year-over-year.
- Cash Position: $84.2 million as of January 31, up $2.5 million from October 31, 2024.
- Fiscal 2026 Revenue Outlook: $400 million to $482 million.
- Fiscal 2026 EBITDA Outlook: $78 million to $88 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Phreesia Inc (PHR, Financial) reported Q4 revenue of $109.7 million, marking a 15% year-over-year increase.
- The company achieved a positive operating cash flow of $16.3 million in Q4, up $19.3 million year-over-year.
- Phreesia Inc (PHR) maintained positive free cash flow for the third consecutive quarter, with Q4 free cash flow at $9.2 million.
- The Phreesia platform was used in approximately 14% of patient visits across the United States, reaching around 170 million people.
- The company is well-positioned to continue generating positive free cash flow while investing in long-term profitable revenue growth.
Negative Points
- The total revenue per AHSC was flat sequentially, despite a 5% year-over-year growth.
- The impact of calendar and weather-related factors posed challenges in Q4, affecting business operations.
- There is uncertainty regarding the macroeconomic environment, including consumer confidence and healthcare policy changes, which could impact future performance.
- Phreesia Inc (PHR) faces competition from larger entrants in the market, which could affect its market share.
- The company did not provide specific attachment rates for new products like patient bill pay, indicating potential challenges in adoption.
