PHR

Phreesia, Inc.

25.80
USD
-1.75%
25.80
USD
-1.75%
13.19 76.10
52 weeks
52 weeks

Mkt Cap 1.31B

Shares Out 50.88M

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Phreesia shares down after analysts cut PT on ambiguous profit outlook

Phreesia (PHR -8.4%) slides as several analysts cut price target following the Q4 result on Wednesday and investment strategy that would weigh on company's outlook. The company expects FY2023 revenue to be between $271M and $275M, above consensus estimate of $262.51M and Adjusted EBITDA to be between negative $154M and negative $149M. The company said it expects to achieve an annualized revenue target of $500M during a quarter of 2025, and expects its Adjusted EBITDA outlook to be in the low annual mark for 2023 through 2025. The company foresees operating leverage in the early part of FY2024 and approach profitability in FY2025. JPMorgan analyst Anne Samuel said the magnitude of the guided FY2023 EBITDA burn was worse than anticipated, cut PT to $42 from $51. The company, however, posted Q4 revenue of $58.02M, beating analysts estimates by $1.68M. The company said it had Cash and cash equivalents of $313.8 million, as of Jan. 31. Needham cuts PT to $35 from $65 and maintains buy rating due to multiple compression in the broader software space. The price target of $35 reflects an EV/revenue multiple of 6.0x on updated FY23 estimate of $273.1M. Citi remains neutral and lowers PT to $36 to reflect sector multiple compression and continued uncertainty around expense management. Citi expects revenue growth to be overshadowed by expense acceleration in FY23. Jefferies believes that FY23 EBITDA guide and lack of definitive clarity around the path to profitability will keep the shares range bound over the near term as investors wait for execution milestones. The puts/takes in the long-term guidance will take time for the investors to digest. Jefferies sets a price target of $59 with buy rating. JMP Securities cut PT to $50 from $70 and maintain a market outperform rating. SVB Leerink lowers PT to $29 from $41 and maintains a market perform rating. JPMorgan cuts PT to $42 from $51, Canaccord Genuity lowers the target to $49 from $81. The stock has underperformed the broader market index over a period of one year:

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