On Friday, KeyBanc Capital Markets maintained its Overweight rating and a $30.00 price target on shares of Phreesia Inc . (NYSE: NYSE:PHR), a patient check-in and payments services provider. The firm's analyst highlighted positive proprietary data trends ahead of the company's upcoming earnings report.
Phreesia's first-quarter performance showed promising signs, with proprietary credit card data indicating a year-over-year increase of approximately 25% in payments to the company, and an approximate 27% rise month-to-date through May 19.
These trends suggest that payment revenues for Phreesia could surpass current consensus estimates for the quarter by nearly 10%. Historically, the firm's credit card data has demonstrated an 80% correlation with Phreesia's payment processing fees year-over-year.
The analyst also referred to a recent investor lunch with Phreesia's CFO, Balaji, which took place in mid-April. During the meeting, discussions about how Phreesia has been handling a cybersecurity issue affecting Change Healthcare (NASDAQ:CHNG) since mid-February were brought up.
Phreesia has been proactive in managing the situation by rerouting to other vendors to maintain uninterrupted operations.
Phreesia's next earnings report is scheduled for Thursday, May 30, after the market closes. Investors and analysts alike are keen to see whether the company's financial results will reflect the positive trends observed in the proprietary data.
The company's stock performance and investor sentiment leading up to the earnings release will likely be influenced by these expectations and the company's ability to effectively manage external challenges, such as cybersecurity issues.
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