OptimizeRX stock target raised to $14 by JMP Securities

Published 13/05/2025, 15:02
OptimizeRX stock target raised to $14 by JMP Securities

On Tuesday, JMP Securities analyst Constantine Davides increased the price target for OptimizeRX Corp (NASDAQ:OPRX) to $14, up from the previous $11, while reiterating a Market Outperform rating on the stock. The adjustment follows a revision of the company’s financial forecasts for the coming years. The new target represents potential upside from the current stock price of $12.58, with the company showing strong momentum through a 49.59% price return over the past six months.

Davides has updated the 2025 revenue projection for OptimizeRX from $100 million to $103.5 million, indicating a year-over-year growth of 12%. The adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) estimate for the same year also saw an increase, from $12.1 million to $14 million, reflecting a 19% year-over-year rise. According to InvestingPro data, the company maintains healthy fundamentals with a strong gross profit margin of 64.13% and a comfortable current ratio of 2.82, indicating solid liquidity.

The analyst’s expectations for 2026 have also been revised upwards. Revenue estimates have been raised to $109 million from the previous forecast of $107 million, showing a 5% year-over-year increase. The adjusted EBITDA forecast for 2026 is now set at $15 million, up from the prior estimate of $13.4 million, representing an 8% year-over-year growth.

The new price target of $14 is derived by applying a 19x multiple against the revised 2025 adjusted EBITDA estimate. This multiple is slightly below the 21x average forward adjusted EBITDA multiple at which OPRX has traded over the past two years. Davides justifies the higher multiple with OptimizeRX’s double-digit organic growth rate, improved revenue visibility, and expanding operating leverage, suggesting confidence in the company’s financial performance and growth prospects. InvestingPro analysis indicates the stock is currently trading above its Fair Value, with additional insights available in the comprehensive Pro Research Report, which covers key metrics and growth drivers for this $227.47M market cap company.

In other recent news, OptimizeRx Corp reported its Q1 2025 earnings, revealing a revenue of $21.9 million, which exceeded the forecasted $19.1 million. Despite a slight miss in earnings per share (EPS), recorded at -$0.12 compared to the expected -$0.1198, the company demonstrated strong revenue growth. The transition to a subscription-based model has begun to show progress, with over 5% of projected annual revenue already converted to subscription contracts for 2025. Additionally, the company has increased its full-year revenue guidance to between $101 million and $106 million, with an adjusted EBITDA target of $13 million to $15 million. OptimizeRx has also managed to pay down $6.2 million of its debt in Q1, reducing its balance to $33.8 million. Analysts from firms like William Blair have noted the company’s strong performance and ongoing strategic initiatives. The company maintains over 80% revenue visibility for the year, indicating confidence in its future financial 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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