Phreesia (PHR): Reassessing Valuation After Back-to-Back Profits and Upgraded 2026–2027 Outlook

Phreesia (PHR) just delivered its second straight profitable quarter, along with higher revenue and an upgraded outlook for 2026 and 2027, signaling a business that is finally scaling more efficiently.

See our latest analysis for Phreesia.

Despite the solid execution, Phreesia's share price has struggled this year, with a year to date share price return of negative 35.29 percent and a one year total shareholder return of negative 32.11 percent. This suggests sentiment is still catching up to the improving fundamentals.

If this kind of profitable healthcare growth story interests you, it could be a good time to explore other potential opportunities across healthcare stocks.

With shares trading well below analyst targets despite a return to profitability and faster growth, the key question for investors now is simple: is Phreesia a mispriced turnaround, or has the market already baked in the next leg of expansion?

Most Popular Narrative: 49.2% Undervalued

With Phreesia closing at $16.30 versus a most popular narrative fair value of $32.12, the spread points to a sizable perceived disconnect in expectations.

The analysts have a consensus price target of $32.467 for Phreesia based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $36.0, and the most bearish reporting a price target of just $29.0.

Read the complete narrative.

Want to see what kind of growth and margin lift could justify nearly doubling from here? The narrative leans on bold profit expansion and richer future multiples. Curious which assumptions really carry this valuation story? Read on to unpack the full playbook behind that target price.

Result: Fair Value of $32.12 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, competitive pressure from integrated healthcare IT platforms, along with slower than expected adoption of new modules, could easily derail the bullish EBITDA expansion narrative.

Find out about the key risks to this Phreesia narrative.

Build Your Own Phreesia Narrative

If the story outlined here does not quite match your view, dive into the numbers yourself and craft a custom narrative in just minutes: Do it your way.

A great starting point for your Phreesia research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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