On Wednesday, JPMorgan (NYSE:JPM) adjusted its price target on shares of Phreesia Inc . (NYSE: NYSE:PHR), a healthcare SaaS platform provider, reducing it to $27.00 from the previous $28.00. Despite the price target cut, the firm continues to hold an Overweight rating on the stock.
Phreesia Inc. is known for offering a suite of solutions that assist healthcare provider organizations in managing patient intake and processing secure patient payments. JPMorgan's stance reflects confidence in Phreesia's potential to tap into the approximately $10 billion total addressable market (TAM) it serves, buoyed by favorable industry trends.
The company has recently shifted its focus towards profitability, projecting EBITDA between $12 million and $20 million for the fiscal year 2025, with expectations for further growth thereafter. Phreesia is also aiming to return to its original initial public offering (IPO) growth trajectory, targeting an annual revenue increase of 20% and EBITDA margins of 20% over time.
This recalibration of growth expectations comes in the wake of a period of significant investment by the company. JPMorgan suggests that Phreesia's increased scale will be instrumental in driving leverage in the future, despite a more conservative growth outlook in the short term.
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