GoodRx Holdings Inc. (GDRX) PT Lowered to $5 at Morgan Stanley

Morgan Stanley analyst Craig Hettenbach lowered the price target on GoodRx Holdings Inc. (NASDAQ: GDRX) to $5.00 (from $6.00) while maintaining a Equalweight rating.

The analyst comments "Why not go Underweight? While this is the latest in a string of multiple setbacks for GoodRx, we don’t think it makes sense to get bearish with the stock at an all time low. First, GoodRx has established a strong consumer brand in healthcare, which combined with increasing momentum in pharma manufacturing solutions business, provides strategic value. In addition, the balance sheet is in reasonably good shape (cash of $281mn and debt of $490mn) and annual FCF is ~$190mn, which should support continued buybacks. For context, the company repurchased 10.2mn shares for $46.4mn in Q2 and has an authorization of $143mn remaining. GoodRx posted 2Q results a touch below Street... Revenue of $203mn and EBITDA of $69.4mn (34.2% margin) was ~1.5% below the Street ( Exhibit 1 ). Within PTR, MACs declined 14% Y/Y to 5.7mn, driven by broader changes in retail pharmacy landscape including store closures, volume reduction in one of its ISPs, partially offset by improving unit economics related to contracting with certain customers and favorable changes in sales mix. Pharma Manufacturing Solutions (PMS) was a bright spot in the quarter, with revenue at $35mn (up 32% Y/Y), driven by continued penetration including growth in consumer direct pricing."

You May Also Be Interested In

• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• Home Depot (HD) call put ratio 1.5 calls to 1 put with a focus on September 330 puts into quarter results
• Intuitive Machines Inc. (LUNR) PT Lowered to $32 at Cantor Fitzgerald, Reaffirms Overweight Rating