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Investing.com - BofA Securities maintained its Underperform rating and $3.40 price target on GoodRx Holdings Inc. (NASDAQ:GDRX) following the company’s latest product announcement. According to InvestingPro data, the stock currently trades at $5.07, with analyst targets ranging from $3.40 to $7.00, suggesting mixed market sentiment despite the company’s impressive 93.68% gross profit margins.
The research firm acknowledged the positive aspects of GoodRx’s new offering, which enables the company to capitalize more directly on patients already using its platform. This development follows GoodRx’s erectile dysfunction subscription launch in June.
BofA noted that the announcement aligns with commentary from GoodRx’s second-quarter earnings call, where the company indicated plans to expand its pharmacy business into new verticals. The new feature appears to allow patients to access cash pay pricing through GoodRx’s traditional retail partners.
The research firm suggested that GoodRx could potentially add its own pharmacy offering to this model in the future, showing the company’s continued evolution in the healthcare space.
Despite recognizing the "steady progress" GoodRx is making with branded partnerships, BofA maintained its Underperform rating, citing ongoing headwinds from pharmacy closures and reimbursement changes in the pharmacy ecosystem.
In other recent news, GoodRx announced a collaboration with Novo Nordisk (NYSE:NVO) to offer Ozempic and Wegovy to self-paying patients for $499 per month. This marks the first time Ozempic has been available at this self-pay price point, potentially increasing access for patients without adequate insurance coverage. The offer is available immediately at over 70,000 retail pharmacies nationwide. GoodRx reported second-quarter revenue of $203.1 million and adjusted EBITDA of $69.4 million, which were largely in line with analyst expectations. However, these figures were slightly below consensus estimates, leading to a reduction in price targets by several firms. UBS lowered its price target for GoodRx to $4.25 from $5.25, citing a downgrade in the company’s guidance for 2025 due to Rite Aid (NYSE:US90274J5618=UBSS)’s bankruptcy and restructuring at a pharmacy benefit manager partner. Raymond (NSE:RYMD) James also downgraded GoodRx from Strong Buy to Outperform, reducing its price target to $5.00 from $9.00. Morgan Stanley (NYSE:MS) followed suit, cutting its price target to $5.00 from $6.00, while maintaining an Equalweight rating.
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