Phreesia named ‘Vertical Software 2025 top pick’ at DA Davidson

DA Davidson analyst William Jellison keeps a Buy rating and $36 price target on Phreesia (PHR) while naming the company the firm’s 2025 top pick in Vertical Software. The stock remains “poorly understood” by the market and believed to be a healthcare company, whereas it clearly adheres to a business model and exhibits characteristics most closely aligned with Vertical Software, the analyst tells investors in a research note. Phreesia also has no debt, likely about $50M of free cash flow in 2025, and 2025 revenue growth of 14%, which is third quartile versus 19 other Vertical Software peers, the firm sates, adding that shares trade at enterprise value of just 20x EBITDA vs. a Vertical peer median multiple of 32x.

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