Investing.com - Leerink Partners lowered its price target on GoodRx Holdings Inc. (NASDAQ:GDRX) to $3.00 from $6.00 while maintaining an Outperform rating on the shares. The stock currently trades at $2.01, down nearly 50% over the past year and near its 52-week low of $2.10.
The firm said GoodRx issued fiscal 2026 guidance well below expectations. The company faces incremental headwinds from customer recontacting, raising questions about the longer-term trajectory of its largest segment.
Leerink noted GoodRx has encountered multiple challenges over the years, including network disputes with a grocer and the Rite Aid bankruptcy. The firm said the company's consumer reach has remained fairly constant despite these issues.
The company is refocusing its strategy to emphasize its fast-growing Pharma Direct business as a means to further monetize its consumer reach. Leerink said the longer-term opportunity is sizable but near-term stabilization of the prescription transactions business remains unclear over the next several quarters.
The firm based its new $3 price target on 4x calendar year 2027 EBITDA, down from approximately 6x previously. Leerink said the valuation remains significantly below public and private-market peers despite a resilient EBITDA base. According to InvestingPro analysis, the stock appears undervalued at current levels, with the company maintaining an impressive 93% gross profit margin and strong free cash flow generation.
In other recent news, GoodRx Holdings Inc. announced its fourth-quarter 2025 earnings, with revenue slightly surpassing expectations at $194.8 million compared to the anticipated $193.43 million. The company's earnings per share (EPS) were in line with projections at $0.09. These results come amidst GoodRx's strategic shift towards a diversified business model. Despite meeting revenue and earnings expectations, the company saw a significant premarket decline in its share price. This reaction is attributed to the market's response to the company's ongoing strategic adjustments. There were no updates regarding mergers or acquisitions. Additionally, analyst firms have not issued any recent upgrades or downgrades for GoodRx. Investors continue to monitor the company's performance closely as it navigates these strategic changes.