This Analyst Lowers Phreesia's Price Target Despite Projecting "Plenty Of Opportunity For Upside" - Read Why
Portfolio Pulse from Nabaparna Bhattacharya
Needham analyst Ryan MacDonald reiterated a Buy rating on Phreesia, Inc. (NYSE:PHR) but lowered the price target from $40 to $29, citing an increased focus on returning to positive adjusted EBITDA and a more balanced approach to growth and profitability. Despite the lower price target, MacDonald is supportive of the company's strategy and sees upside potential, especially with the opportunity for cross-selling recently acquired modules and the long-term monetization of PAM. Phreesia's FY25 adjusted EBITDA is expected to be between $10 million and $20 million, surpassing previous expectations. PHR shares rose 20.5% to $17.78.
December 06, 2023 | 7:03 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Needham analyst Ryan MacDonald reaffirmed a Buy rating on Phreesia, Inc. but reduced the price target to $29 from $40. The company's shift towards profitability and growth balance is seen positively, with a significant rise in adjusted EBITDA expectations for FY25.
The reaffirmation of a Buy rating by a respected analyst suggests confidence in the company's future performance, despite the lowered price target. The positive outlook on adjusted EBITDA and the potential for cross-selling and monetization of acquired modules indicate a strong upside potential, which could lead to increased investor interest and a positive short-term impact on the stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100