DA Davidson has revised the price target for Phreesia Inc. (NYSE:PHR) downwards to $30 per share from the previous $35, while maintaining a Buy recommendation on the healthcare technology firm’s shares. This updated target signals considerable potential growth compared to Phreesia’s existing trading price, which is around $15.80—closely hovering near its 52-week low of $15.40, according to InvestingPro data.
The adjustment emerged in the wake of a recent dialogue between DA Davidson representatives and Phreesia’s Chief Financial Officer, during which the company’s long-term growth drivers were explored. The conversation highlighted the possibility that the firm's organic revenue growth could surpass its current guidance range of 8% to 10% annually through fiscal year 2027.
Despite lowering the price expectation, DA Davidson maintains a constructive perspective on Phreesia’s outlook for fiscal year 2027. The brokerage regards recent price weakness in Phreesia’s shares as a buying opportunity, signifying confidence in the firm’s underlying fundamentals and market positioning.
The newly adjusted $30 target correlates to approximately 20 times the firm’s projected free cash flow for fiscal year 2027, a valuation consistent with comparable high-growth companies within the healthcare technology sector.
Phreesia specializes in patient intake management solutions that aid healthcare organizations in automating administrative processes and enhancing patient experience via their digital platforms.
In a broader context, Phreesia’s third-quarter fiscal 2026 earnings surpassed analyst expectations, particularly regarding profitability, as reported in recent disclosures. DA Davidson has reaffirmed its Buy rating and initially held the $35 price target, pointing to the positive financial impacts of Phreesia’s acquisition of AccessOne.
Conversely, other analysts have adjusted their views downward; Raymond James reduced its target price from $33 to $25, citing revenue guidance revisions that lowered expectations by about $4.5 million for the fourth quarter and $20 million for fiscal 2027. Similarly, Mizuho decreased its price target from $36 to $28, attributing the downward shift to concerns over a decline in revenue from Network Solutions anticipated in fiscal Q4 2026.
New entrants to coverage include Wells Fargo, which initiated an Overweight rating on Phreesia with a $30 price target, underscoring the firm's significant role in managing patient visits in the U.S. market. Furthermore, Piper Sandler has advocated for purchasing the shares, describing the stock as oversold after recent pharmaceutical marketing events.
Collectively, these analyst actions demonstrate a blend of cautious optimism and vigilance about Phreesia’s future financial performance, reflecting balances between growth potential and market uncertainties.