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Investing.com - Mizuho (NYSE:MFG) has reiterated its Neutral rating and $5.00 price target on GoodRx Holdings Inc. (NASDAQ:GDRX), currently trading at $5.15, following the company’s new collaboration with Novo Nordisk (NYSE:NVO). According to InvestingPro analysis, the company maintains impressive gross profit margins of 93.68% and shows strong financial health with a current ratio of 4.21.
The partnership aims to expand access to Novo Nordisk’s branded GLP-1 medications, Ozempic and Wegovy, offering them to eligible cash-paying customers at $499 per month through retail channels.
Mizuho views this development positively for GoodRx, noting the company enters this market without channel conflicts since it has historically not been involved in dispensing compounded versions of GLP-1 drugs.
GoodRx will need to leverage its existing provider relationships and app awareness to generate additional GLP-1 prescription volume, as the company owns minimal virtual provider assets. Management has indicated that approximately 17 million people sought GLP-1 savings information through GoodRx in the past year.
Despite the favorable outlook on the partnership, Mizuho has maintained its earnings estimates and $5 price target until there is greater clarity on volume capture trends for the new offering.
In other recent news, GoodRx Holdings Inc. reported second-quarter revenue of $203.1 million and adjusted EBITDA of $69.4 million, which met analyst expectations. The company announced a collaboration with Novo Nordisk to offer Ozempic and Wegovy to eligible self-paying patients for $499 per month, marking a significant price reduction for these medications. This offering is now available at over 70,000 retail pharmacies nationwide. Despite these developments, BofA Securities maintained its Underperform rating on GoodRx with a $3.40 price target, acknowledging the positive aspects of the company’s new product offering. UBS also adjusted its price target for GoodRx, lowering it from $5.25 to $4.25, while maintaining a Neutral rating. This adjustment follows a downgrade in GoodRx’s guidance for 2025 due to Rite Aid (NYSE:US90274J5618=UBSS)’s bankruptcy and restructuring at one of its pharmacy benefit manager partners. Additionally, Raymond (NSE:RYMD) James downgraded GoodRx from Strong Buy to Outperform, reducing its price target to $5.00 from $9.00. These recent developments highlight significant changes and collaborations impacting GoodRx’s market position.
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