Citi Cuts Phreesia, Peloton Price Targets After Mixed Earnings

Citi analyst Daniel Grosslight has lowered the price target for Phreesia Inc. to $33 from $35 while maintaining a Buy rating, citing solid overall financial results despite slower growth in the Network Solutions segment. Phreesia's revenue grew 14.5%, with adjusted EBITDA exceeding estimates due to SG&A efficiencies, and the company maintained its FY26 revenue growth guidance of 12%-15%. Meanwhile, Citi analyst Ronald Josey reduced Peloton Interactive's price target to $8.50 from $10, retaining a Neutral rating following mixed Q3 fiscal 2025 results, including a 13.1% sales decline but better-than-expected earnings and improved churn rates. Peloton's EBITDA and free cash flow margins are expanding, supported by positive customer response to new products and operational efficiencies, though Citi remains cautious about growth given the early stage of initiatives. Both companies show potential upside according to average analyst price targets and maintain generally positive outlooks despite some forecast adjustments. The balanced perspectives highlight Investor optimism tempered by prudent risk assessments amid evolving market conditions.