GoodRx Holdings (GDRX – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Eric Sheridan from Goldman Sachs reiterated a Hold rating on the stock and has a $7.50 price target.
Eric Sheridan has given his Hold rating due to a combination of factors that suggest a balanced view of GoodRx Holdings’s prospects. He acknowledges the company’s solid adjusted EBITDA performance, which is backed by cost efficiencies and a restructuring of the pharma manufacturer solutions segment. This performance has resulted in margins that are expected to remain above 2023 levels. Sheridan also notes GoodRx’s progress in reinforcing its retail pharmacy relationships and the acceleration of its hybrid model, although he points out the negative impact of the Kroger subscription offering on subscriber counts.
Looking ahead, Sheridan sees the upcoming Investor Day as a potential positive catalyst that could clarify the company’s medium-to-long-term expectations, growth opportunities, and financial trajectory. Despite these positive elements, he maintains a Neutral rating and retains a 12-month price target of $7.50. Adjustments to operating estimates have been made in light of the recent earnings report and management’s commentary, reflecting a cautious optimism about GoodRx’s future as a multi-sided platform delivering consumer savings and industry partner volumes in a fragmented market.
According to TipRanks, Sheridan is a 5-star analyst with an average return of 11.6% and a 53.35% success rate. Sheridan covers the Communication Services sector, focusing on stocks such as DoorDash, Meta Platforms, and Netflix.
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GoodRx Holdings (GDRX) Company Description:
GoodRx Holdings Inc provides digital healthcare platform that provides prescription drugs at affordable prices. The company offers services like diabetes testing, general visits, blood tests, HIV testing, Vitamin D screening, Pregnancy testing, and many more.
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