Core Viewpoint - DA Davidson has lowered the price target for Phreesia (PHR) to $30 from $35 while maintaining a Buy rating, indicating a positive outlook despite recent stock price underperformance [1] Group 1: Price Target and Rating - The price target for Phreesia has been reduced to $30 from $35 [1] - DA Davidson continues to hold a Buy rating on Phreesia shares [1] Group 2: Growth Drivers and Revenue Outlook - The firm engaged in discussions with Phreesia regarding long-term growth drivers that could exceed the 8%-10% organic year-over-year revenue growth guidance for FY27 [1] - There is potential for positive revisions to future revenue numbers based on the discussions [1] Group 3: Investment Opportunity - The recent underperformance of Phreesia's stock price is viewed as a buying opportunity by the analyst [1]

Company Overview - Phreesia, Inc. (NYSE:PHR) is a healthcare technology company focused on enhancing patient intake and engagement while streamlining administrative processes in healthcare settings [1][5] - The company operates in a competitive landscape alongside peers such as Health Catalyst, Veracyte, Accolade, Castle Biosciences, and Personalis, each providing unique solutions in the healthcare technology sector [1] Financial Performance - Phreesia's Return on Invested Capital (ROIC) is -12.98%, indicating that the company is not generating returns above its cost of capital [2][5] - The company's Weighted Average Cost of Capital (WACC) is 6.71%, leading to a ROIC to WACC ratio of -1.93, which suggests inefficient capital utilization [2][5] Peer Comparison - Health Catalyst has a ROIC of -16.99% and a WACC of 6.12%, resulting in a ROIC to WACC ratio of -2.78, indicating even less efficient capital utilization than Phreesia [3] - Accolade and Personalis also exhibit negative ROIC to WACC ratios of -2.91 and -3.19, respectively, reflecting similar challenges in generating returns above their cost of capital [3] - Castle Biosciences has a ROIC of -4.44% and a WACC of 8.60%, resulting in a ROIC to WACC ratio of -0.52, which, while still negative, is closer to breaking even compared to other peers [4] Industry Challenges - Overall, Phreesia and its peers face significant challenges in generating sufficient returns to cover their cost of capital, which raises concerns for investors [4]

I’m an ACC-qualified finance professional with a Master’s in Audit & Accounting from Istanbul University and certificates in Data Analytics from Coursera. For over two years, I’ve worked as a Data Scientist and Financial Analyst at a leading property management firm in Istanbul, where I developed budgets, set targets, and applied data-driven insights to maximize profitability. My expertise spans financial modeling, market analysis, and investment research, including hands-on experience in stocks and cryptoc ...

Core Insights - The article highlights the qualifications and experience of a finance professional with expertise in data analytics, financial modeling, and investment research [1] Group 1: Professional Background - The individual is ACC-qualified and holds a Master's in Audit & Accounting from Istanbul University [1] - Over two years of experience as a Data Scientist and Financial Analyst at a leading property management firm in Istanbul [1] - Developed budgets, set targets, and utilized data-driven insights to enhance profitability [1] Group 2: Areas of Expertise - Expertise includes financial modeling, market analysis, and investment research [1] - Hands-on experience in stocks and cryptocurrency [1] - Focus on concise, conversational writing to share financial insights [1]

Phreesia Inc. (NYSE:PHR) is one of the stocks that will double in 2026. On December 10, Baird lowered the firm’s price target on Phreesia to $25 from $31 with an Outperform rating on the shares. This announcement was made after the firm updated its model to reflect the company’s latest guidance for 2026-2027. Just a day prior, Phreesia released its FQ3 2026 earnings report, where the company announced a total revenue of $120.3 million, which marked a 13% increase year-over-year. Furthermore, Phreesia ach ...

Core Viewpoint - Phreesia (PHR) has experienced a significant downtrend, with a 32.2% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Technical Analysis - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 typically indicating that a stock is oversold [2]. - PHR's current RSI reading of 18.23 suggests that the heavy selling pressure may be exhausting, indicating a possible bounce back towards equilibrium in supply and demand [5]. Fundamental Analysis - There is a strong consensus among sell-side analysts regarding PHR's earnings estimates, with a 20.3% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7]. - PHR holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8].

Core Insights - The investor reaction to Phreesia's third-quarter performance was overly negative despite the company showing significant improvements in revenue and profitability [1][8] Financial Performance - Phreesia reported a 13% year-over-year increase in revenue, exceeding $120 million, driven by a 7% growth in the average number of healthcare services clients to 4,520 [2][4] - The company achieved a net profit of nearly $4.3 million ($0.07 per share), a turnaround from a loss of $14.4 million in the same quarter last year, with both revenue and profit figures surpassing analyst expectations [4][5] Revenue Streams - All three revenue streams—subscription and related services, network solutions, and payment processing—grew at low double-digit rates of 12%, 14%, and 11% respectively during the quarter [5] Guidance and Market Reaction - Phreesia tightened its full-year 2026 revenue guidance to $479 million to $481 million, slightly below analyst expectations of nearly $486 million [6] - The company's forecast for non-GAAP EBITDA was raised to $99 million to $101 million, up from a previous range of $89 million to $92 million [7] - Despite the stock's significant drop of over 23% following the earnings release, the negative sentiment appears exaggerated, primarily due to the revenue guidance miss [1][8]

Financial Performance - Total revenue increased 13% to $120.3 million for the three months ended October 31, 2025, compared to $106.8 million for the same period in 2024[163]. - Net income was $4.3 million for the three months ended October 31, 2025, compared to a net loss of $14.4 million for the same period in 2024[163]. - Adjusted EBITDA was $29.1 million for the three months ended October 31, 2025, compared to $9.8 million for the same period in 2024[163]. - Free cash flow was $8.8 million for the three months ended October 31, 2025, compared to $1.6 million for the same period in 2024[163]. - Total revenue for the nine months ended October 31, 2025, was $353.5 million, a 14% increase from $310.1 million for the same period in 2024[195]. - Adjusted EBITDA for the three months ended October 31, 2025, was $29.1 million, up 198% from $9.8 million in the same period of 2024[231]. - Net cash provided by operating activities for the nine months ended October 31, 2025, was $45.2 million, significantly higher than $16.1 million for the same period in 2024[246]. Revenue Breakdown - Subscription and related services revenue increased by $6.1 million to $55.5 million for the three months ended October 31, 2025, representing a 12% growth year-over-year[194]. - Payment processing fees revenue rose by $2.7 million to $27.4 million for the three months ended October 31, 2025, an 11% increase compared to the prior year[196]. - Network solutions revenue increased by $4.7 million to $37.4 million for the three months ended October 31, 2025, reflecting a 14% growth year-over-year[196]. - Subscription and related services revenue for the nine months ended October 31, 2025, increased by $18.8 million to $163.5 million, a 13% growth year-over-year[197]. - Payment processing fees revenue for the nine months ended October 31, 2025, rose by $8.7 million to $85.7 million, an 11% increase compared to the prior year[197]. - Network solutions revenue for the nine months ended October 31, 2025, increased by $15.9 million to $104.2 million, reflecting an 18% growth year-over-year[197]. Expenses - Cost of revenue (excluding depreciation and amortization) for the three months ended October 31, 2025, was $18.3 million, a 3% increase from $17.9 million in the same period of 2024[198]. - Payment processing expense for the three months ended October 31, 2025, increased by $3.0 million to $19.7 million, an 18% rise compared to $16.7 million in the prior year[202]. - Sales and marketing expense decreased by $5.9 million to $24.1 million for the three months ended October 31, 2025, a 20% decline compared to $30.1 million for the same period in 2024[204]. - Research and development expense increased by $0.1 million to $29.5 million for the three months ended October 31, 2025, remaining relatively stable with a 0% change from $29.3 million in 2024[208]. - General and administrative expense decreased by $2.1 million to $17.5 million for the three months ended October 31, 2025, an 11% decline compared to $19.6 million for the same period in 2024[212]. - Sales and marketing expense decreased by $16.7 million to $75.6 million for the nine months ended October 31, 2025, an 18% decline compared to $92.3 million in 2024[206]. - Research and development expense increased by $2.8 million to $90.6 million for the nine months ended October 31, 2025, a 3% increase from $87.7 million in 2024[210]. - General and administrative expense decreased by $5.2 million to $52.9 million for the nine months ended October 31, 2025, a 9% decline compared to $58.2 million in 2024[214]. - Amortization expense increased by $2.2 million to $12.3 million for the nine months ended October 31, 2025, a 22% increase from $10.1 million in 2024[219]. Cash and Financing - Cash and cash equivalents as of October 31, 2025, were $106.4 million, an increase of $22.2 million compared to January 31, 2025[163]. - The AccessOne Acquisition was completed on November 12, 2025, for a total cash consideration of $160 million, funded by cash and a $110 million secured term loan[236]. - The Bridge Loan associated with the AccessOne Acquisition has an outstanding principal of $110 million and matures on November 11, 2026, with an interest rate that increases by 0.5% every three months[237]. - The company entered into a 364-day secured term loan of $110 million on November 12, 2025, with an interest rate of three-month SOFR plus a margin of 4.00% per annum, increasing by 0.5% every three months[266]. - The Capital One Credit Facility, entered in December 2023, provides a $50 million revolving credit line, enhancing financial flexibility through fiscal 2028[238]. - The company expects that its cash and cash equivalents, along with cash generated from operations, will be sufficient to meet its needs for at least the next 12 months[242]. - As of October 31, 2025, the company had cash and cash equivalents primarily in money market funds and cash deposits, with a portfolio relatively insensitive to interest rate changes[264]. Foreign Currency and Market Risk - For the fiscal year ended January 31, 2025, changes in foreign currency exchange rates negatively affected expenses and largely offset operating income[267]. - Approximately 86% of the company's expenses for the three months ended October 31, 2025, were denominated in US Dollars[267]. - Foreign currency gains and losses for the nine months ended October 31, 2025, were gains of $0.2 million and losses of $0.3 million for the same period in 2024[268]. - The company entered into foreign currency forward contracts to hedge a portion of Canadian Dollar payroll payments, with 90% designated as cash flow hedges[269]. - A 1% increase or decrease in foreign exchange rates between the Canadian Dollar, Indian Rupee, and US Dollar is not expected to have a material effect on the company's results of operations or financial condition[270]. - There were no significant changes in the company's market risk disclosures during the nine months ended October 31, 2025[271].

Core Insights - Phreesia, Inc. is a healthcare technology company focused on patient intake management, enhancing operational efficiency and patient engagement [1] - The company has a market capitalization of approximately $1.21 billion and has experienced significant stock price fluctuations over the past year [4] Financial Performance - Phreesia reported solid earnings with two consecutive quarters nearing breakeven, indicating progress towards profitability [3][5] - Despite the positive earnings report, the stock price declined by approximately 0.86%, fluctuating between $19.40 and $21.24 [2][5] Market Outlook - Canaccord Genuity set a price target of $33 for Phreesia, suggesting a potential increase of about 64% from its trading price of $20.12 [2][5] - The stock has seen a high of $32.76 and a low of $18.55 over the past year, reflecting volatility in the market [4]

Company Performance - AutoZone, Inc. (NYSE:AZO) stock fell approximately 7% after reporting first-quarter earnings and sales that did not meet Wall Street expectations, with earnings per share at $31.04, below the consensus estimate of $32.37, and quarterly sales of $4.629 billion, which was an 8.2% year-over-year increase but missed the expected $4.637 billion [2] Market Movements - Alexander & Baldwin, Inc. (NYSE:ALEX) shares surged 38% to $20.89 following the announcement of a $2.3 billion all-cash deal to go private [8] - Exicure Inc (NASDAQ:XCUR) shares increased by 35% to $7.10 after positive results from a Phase 2 trial related to multiple myeloma treatment [8] - Tronox Holdings plc (NYSE:TROX) shares rose 30% to $4.86 after receiving non-binding letters of support for up to $600 million in financing for its rare earth supply chain development [8] - Top Wealth Group Holding Ltd (NASDAQ:TWG) shares plummeted 71% to $6.31 after announcing a public offering priced at $7.00 per unit [8] - Phreesia, Inc. (NYSE:PHR) shares fell 21% to $15.80 following third-quarter results [8] - SLM Corporation (NASDAQ:SLM) shares decreased by 16% to $25.86 after a downgrade from Buy to Sell and a reduction in price target from $35 to $23 [8] Economic Indicators - U.S. private employers added an average of 4,750 jobs per week during the four weeks ending November 22 [10] - U.S. job openings increased by 12,000 to 7.670 million in October, compared to 7.658 million in September [10]