Update shared on06 Sep 2025
Fair value Increased 3.90%Phreesia’s price target increased to $33.73 as analysts responded positively to solid Q2 results, upwardly revised FY26 EBITDA guidance, strategic product launches, and the AccessOne acquisition—despite valuation concerns—supporting a strong double-digit growth outlook and margin expansion.
Analyst Commentary
- Solid Q2 results, with revenues in line and adjusted EBITDA ahead of consensus; company raised FY26 EBITDA guidance driven by effective expense management.
- The $160M acquisition of AccessOne, Phreesia's largest to date, is expected to complement its payment processing business, generate synergistic benefits, and strengthen value proposition for larger clients, although the purchase multiple raised some valuation concerns.
- Launch of three new products—VoiceAI, AI-Assisted Referrals, and Out-of-Network Tags—expected to broaden Phreesia’s addressable market and expand growth opportunities.
- Bullish analysts highlight ongoing ARPU (average revenue per user) growth, stable core business performance, and opportunities amid a moderating pace in provider adds.
- Consensus among bullish analysts cites Phreesia’s ability to address a broader range of problems for providers, patients, and pharma companies, supporting durable double-digit growth outlook and continued margin expansion.
What's in the News
- Phreesia maintained its fiscal year 2026 revenue guidance at $472 million to $482 million, excluding potential contributions from acquisitions like AccessOne.
- Launched Phreesia VoiceAI, an intelligent AI phone solution for healthcare designed to improve patient experience and staff efficiency by automating call triage, routing, and documentation.
- Partnered with Sesame Workshop to deliver educational health content to parents and caregivers through Phreesia's digital intake platform, leveraging Sesame Street characters in a five-year collaboration.
Valuation Changes
Summary of Valuation Changes for Phreesia
- The Consensus Analyst Price Target has risen slightly from $32.47 to $33.73.
- The Future P/E for Phreesia has risen from 50.33x to 53.39x.
- The Net Profit Margin for Phreesia has fallen slightly from 8.60% to 8.22%.
Disclaimer
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