Mar 1 2024: Following GoodRx Holdings Inc.’s (NASDAQ: GDRX) earnings report for the fourth quarter of 2023, JPMorgan has upgraded its rating on the stock from Neutral to Overweight, along with increasing the price target from $7.00 to $10.00.
The decision to upgrade GoodRx and adjust the price target is rooted in JPMorgan’s belief that the company is on the cusp of a positive turnaround. This optimism is founded on GoodRx overcoming recent challenges, such as deprioritized partnerships with Kroger (NYSE: KR) and vitaCare, as well as the anticipated growth from increased adoption of its Internet Service Provider (ISP).
JPMorgan’s analysis suggests that GoodRx’s guidance for 2024 could signal both a shift in momentum and conservative estimates, considering management’s efforts to establish credibility in providing reliable guidance. Consequently, JPMorgan has raised its revenue projections for the company, foreseeing further growth into 2025.
The firm favors companies actively engaged in the prescription drug supply chain within the healthcare services sector, which includes GoodRx. JPMorgan believes that concerns regarding changes in pharmacy reimbursement models may be overstated.
GoodRx’s value proposition lies in the ongoing trend of shifting pharmacy costs to consumers and efforts by pharmacies and pharmacy benefit managers (PBMs) to retain prescriptions. JPMorgan’s outlook demonstrates confidence in GoodRx’s ability to capitalize on these market dynamics.
This article, generated with AI assistance and reviewed by an editor, provides insights into JPMorgan’s updated perspective on GoodRx’s stock performance. For further details, please refer to our Terms and Conditions.
