Goldman Sachs lowers GoodRx stock price target on healthcare headwinds

Published 08/08/2025, 11:06
Goldman Sachs lowers GoodRx stock price target on healthcare headwinds

Investing.com - Goldman Sachs has lowered its price target on GoodRx Holdings Inc. (NASDAQ:GDRX) to $3.75 from $5.00 while maintaining a Neutral rating on the stock. According to InvestingPro analysis, the stock appears undervalued, with impressive gross profit margins of 94% and a strong current ratio of 5.2x.

The price target reduction follows GoodRx’s second-quarter 2025 earnings report, which highlighted several challenges in the healthcare environment, including a recently announced bankruptcy by a major retail pharmacy and erosion of an integrated savings program. The stock has declined 23% in the past week and is trading near its 52-week low of $3.31.

Despite these headwinds, GoodRx management has revised upward its growth expectations for manufacturer solutions (advertising) to 30% year-over-year, up from a previous projection of 20%.

The company’s strategy now centers on managing steady growth within its core business while maintaining disciplined expense control, according to Goldman Sachs. Management plans to make targeted investments in the core business and intends to announce strategic initiatives later this year.

GoodRx’s capital allocation priorities remain focused on deploying excess cash toward share buybacks as the company navigates the challenging healthcare landscape and broader macroeconomic environment.

In other recent news, GoodRx Holdings Inc. announced its second-quarter earnings for 2025, which did not meet market expectations. The company reported earnings per share (EPS) of $0.09, slightly below the projected $0.10. Additionally, GoodRx’s revenue for the quarter was $203.1 million, missing the anticipated $205.87 million. These results have drawn attention from investors and analysts alike. Following the earnings announcement, there was notable investor reaction. Although specific analyst upgrades or downgrades were not mentioned, the earnings miss could influence future analyst assessments. As these developments unfold, stakeholders are closely monitoring GoodRx’s performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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