WB starts Phreesia at OP

William Blair launched coverage of Phreesia (NYSE:PHR) with an “outperform” rating. The stock closed at $27.37 on Aug. 9.

Phreesia, which went public in July 2019, gives healthcare organizations a suite of robust applications to manage the patient intake process.

Analyst Ryan Daniels writes that he projects the company’s fiscal 2020 EBITDA to be $2.5-million on revenue of $116.9-million. For fiscal 2021, he estimates EDBITDA of $6.4-million on revenue of $139.4-million.

Mr. Daniels noted six primary reasons to view Phreesia as a core small-cap healthcare IT holding:

  • Phreesia is well positioned to benefit from key mega trends in the healthcare marketplace.
  • Phreesia’s solutions address a critical but largely unmet need in the market, presenting ample organic growth opportunities.
  • Phreesia has a compelling end-to-end product suite, which provides high value to customers (both patients and providers) and also creates competitive advantages over industry peers.
  • Phreesia has a deep and experienced management team and innovative corporate culture.
  • High customer-retention rates and a largely recurring-revenue base create a solid financial model, with strong incremental margin opportunities.
  • And inorganic growth opportunities also could bolster the longer-term margin and growth profile of the company.

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