RBC upgrades Phreesia to outperform

Investing.com — RBC Capital Markets upgraded Phreesia Inc (NYSE:PHR) to “outperform” from “sector perform,” citing stronger confidence in the company’s long-term EBITDA growth potential.

The firm highlighted Phreesia’s ability to increase revenue per client while keeping costs stable, driving operating leverage and margin expansion.

Despite a slight deceleration in consolidated revenue growth, the cost discipline and growth model position the company to potentially rejoin the “Rule-of-40” club, which balances growth and profitability.

RBC raised its price target on the stock to $32 from $24, noting that successful execution on revenue growth would serve as a key catalyst.