Phreesia (PHR) Valuation Check as Analyst Upgrades Lift Earnings Expectations and Renew Market Interest

Phreesia (PHR) is back on traders radar after analysts sharply raised their earnings forecasts for the quarter ended October 2025, pairing a big consensus EPS bump with a positive earnings surprise indicator.

See our latest analysis for Phreesia.

Even with analysts turning more upbeat, Phreesia’s latest share price of $20.15 comes after a tough stretch, including a 30 day share price return of minus 11.35 percent and a 90 day share price return of minus 35.44 percent. Its 1 year total shareholder return of minus 4.77 percent and 5 year total shareholder return of minus 61.7 percent show that longer term holders are still waiting for momentum to convincingly turn.

If this earnings story has you rethinking your exposure to healthcare technology, it could be a good moment to explore healthcare stocks for other potential opportunities in the space.

With earnings expectations racing ahead while the share price lags, investors face a key question: is Phreesia quietly trading at a steep discount to its growth prospects, or is the market already pricing in the next leg of upside?

Most Popular Narrative Narrative: 40.3% Undervalued

With Phreesia closing at $20.15 against a narrative fair value near $33.73, the story centers on robust growth expectations meeting a discounted share price.

The continued rollout and adoption of new value-added modules such as appointment readiness, enhanced bill pay, and post-script engagement are increasing recurring revenue per client and expanding Phreesia's addressable market, which supports both top-line growth and enhanced net margins over time. Ongoing integration of AI across products and internal operations is expected to drive future efficiencies, enable new product capabilities, and strengthen Phreesia's competitive differentiation, thereby supporting operating leverage and potential EBITDA margin expansion.

Read the complete narrative.

Want to see the math behind this upside gap? The narrative leans on powerful revenue compounding, margin lift, and a future earnings multiple usually reserved for elite growth names. Curious what those projections look like under the hood?

Result: Fair Value of $33.73 (UNDERVALUED)

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

However, regulatory shifts trimming pharma ad budgets, or slower than expected adoption of new modules, could quickly challenge this upbeat, undervalued thesis.

Find out about the key risks to this Phreesia narrative.

Build Your Own Phreesia Narrative

If you are not fully convinced by this view or want to dig into the numbers yourself, you can craft a personalized narrative in minutes: Do it your way.

A great starting point for your Phreesia research is our analysis highlighting 3 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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