Phreesia's Network Solutions Business Attracts Mizuho's Outperform Rating

Phreesia, a patient intake management software developer, has seen its stock rise after Mizuho launched coverage with an Outperform recommendation. The recommendation is based on potential in the company's network solutions business, which generated $121.6M in revenue for 2022. Mizuho expects Phreesia's network solutions business to continue to grow, driven by increasing demand for patient engagement solutions.

Phreesia (NYSE: PHR), a developer of patient intake management software, experienced a significant stock rise following Mizuho's launch of its coverage with an Outperform recommendation. The recommendation is centered on the company's network solutions business, which generated $121.6 million in revenue for 2022 [1]. Mizuho analyst Steven Valiquette highlighted the potential of this business, which provides patients with customized health content and allows Phreesia to capitalize on pharma digital marketing expenditure. The network solutions business has demonstrated robust growth, with revenue increasing by ~29% year-over-year (YoY) in 2025 compared to ~27% YoY growth in 2024.

Valiquette underscores that the network solutions business has been a key driver for Phreesia's EBITDA margins, which have improved to +18-19% in 2025. He expects further enhancements in the company's EBITDA margins, with a potential +15-20% compound annual growth rate (CAGR) in network solutions revenue. The analyst has set a $36 per share target on the stock, noting that Phreesia currently trades at a nearly 14x enterprise value (EV)/EBITDA multiple for 2026 estimates, compared to an average multiple of ~17x among its healthcare tech peers.

The Mizuho analyst's recommendation underscores the growing demand for patient engagement solutions and Phreesia's ability to leverage its network solutions business to drive revenue acceleration. Investors should closely monitor Phreesia's financial performance and the continued growth prospects of its network solutions business.

References:
[1] https://seekingalpha.com/news/4489705-phreesia-stock-new-outperform-mizuho