UPDATE: BofA Securities Reinstates GoodRx Holdings Inc. (GDRX) at Buy

BofA Securities analyst Michael Cherny reinstates coverage on GoodRx Holdings Inc. (NASDAQ: GDRX) with a Buy rating and a price target of $11.00.

The analyst comments "

We are reinstating coverage on GoodRx with a Buy rating and an $11 Price Objective,
based on 15-16x CY23 EV/EBITDA which is roughly in-line with the blended peer group
(see p. 10). GDRX remains the leading marketplace for prescription transparency, offering
cash pay alternative prices with a burgeoning offering for telehealth/manufacturer
services to capitalize on its broad market position. The platform value comes from data,
as millions of data points from pharmacies/ PBMs/ payers creates an ongoing loop to

support consistent discounts. The recent stock sell-off, tied first to a Covid-driven slow-
down and exacerbated by a dispute Kroger is having with PBMs (not specifically

disclosed but highly confident Kroger is the channel) has led to shares being down ~75% YTD. Yet we view these dynamics as temporal, and even with slower potential growth from here GDRX remains highly profitable with strategic value across the pharmacy channel. The path to recovery may not be completely linear as we wait for more color on the Kroger situation (5% of pharmacies in the US but ~25% of last year’s GDRX scripts) but, assuming resolved, has the potential to drive at least a modest recapture of multiples given the strong margin profile."

For an analyst ratings summary and ratings history on GoodRx Holdings Inc. click here. For more ratings news on GoodRx Holdings Inc. click here.

Shares of GoodRx Holdings Inc. closed at $7.58 yesterday.

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