GoodRx stock price target lowered to $4.25 from $5.25 at UBS

Investing.com - UBS lowered its price target on GoodRx Holdings Inc. (NASDAQ:GDRX) to $4.25 from $5.25 on Monday, while maintaining a Neutral rating on the healthcare discount platform. The stock, currently trading near its 52-week low of $3.31, has declined nearly 23% in the past week alone, according to InvestingPro data.

The price target reduction follows GoodRx’s downgrade in guidance for 2025, which the company attributed to Rite Aid (NYSE:US90274J5618=UBSS)’s bankruptcy and a restructuring at one of its pharmacy benefit manager (PBM) partners.

UBS noted that while these challenges weren’t directly caused by GoodRx, they highlight ongoing risks as the pharmaceutical supply chain continues to face macroeconomic pressures.

The firm acknowledged that GoodRx’s new management team, in place for less than a year, has implemented appropriate strategies, including growing Manufacturer Solutions and diversifying Prescription Solutions revenue through new PBM relationships and direct employer connections.

UBS expects these initiatives to positively impact GoodRx’s performance in 2026, but cited uncertainties in the current business model and reduced its estimates based on known headwinds from Rite Aid closures and volume challenges with its PBM partner.

In other recent news, GoodRx Holdings Inc. reported its second-quarter 2025 earnings, revealing revenue of $203.1 million and an adjusted EBITDA of $69.4 million. These figures were slightly below market expectations, with revenue missing the anticipated $205.87 million and earnings per share coming in at $0.09, just under the forecast of $0.10. The earnings report prompted several analysts to adjust their outlooks on the company. Raymond (NSE:RYMD) James downgraded GoodRx from Strong Buy to Outperform, citing the company’s guidance cut following Rite Aid closures. Additionally, Morgan Stanley (NYSE:MS) reduced its price target for GoodRx to $5.00 from $6.00, maintaining an Equalweight rating due to retail challenges. Goldman Sachs also lowered its price target to $3.75 from $5.00, highlighting healthcare headwinds and the impact of a major retail pharmacy’s bankruptcy. These developments reflect the challenges GoodRx is facing in the current healthcare environment.

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