What Does Wall Street Think About GoodRx Holdings (GDRX)?

GoodRx Holdings, Inc. (NASDAQ:GDRX) is one of the best affordable stocks under $5 to buy for the next 3 years. BofA slashed the price target on GoodRx Holdings, Inc. (NASDAQ:GDRX) to $3 from $3.40 on November 17 while maintaining an Underperform rating on the shares. The firm released the rating update after the company announced two significant initiatives regarding its weight loss offerings.

GoodRx Holdings, Inc. (NASDAQ:GDRX) announced on November 17 the launch of two initiatives to boost the availability of FDA-approved GLP-1 medications, with the first initiative marking the launch of GoodRx for Weight Loss, a telemedicine subscription. The subscription would serve as a bridge between consumers and licensed healthcare providers for the provision for affordable weight management treatments.

The second initiative was released in partnership with Novo Nordisk, and entails a new introductory cash price of $199 per month for Ozempic and Wegovy injection pens, available to GoodRx users.

BofA thus told investors that it sees the announcement positively, since the collaboration not only expands the subscription offering but also builds on the company’s existing partnership with Novo Nordisk. While the firm acknowledged GoodRx Holdings, Inc.’s (NASDAQ:GDRX) progress in the expansion of its partnerships, it maintained an Underperform rating on the stock due to the reimbursement changes in the pharmacy ecosystem and the broader headwinds from pharmacy closures.

Separately, JPMorgan and TD Cowen slashed their price targets on GoodRx Holdings, Inc. (NASDAQ:GDRX) on November 11 and November 10, respectively. JPMorgan analyst Lisa Gill brought the price target down to $5 from $6 while keeping an Overweight rating on the shares, while TD Cowen lowered the price target to $6 from $7 while maintaining a Buy rating.

TD Cowen told investors that while some of the company’s new offerings are promising and its role in Cigna’s new PBM model is also potentially positive, material impact remains unlikely until at least 2027, and thus valuation overly discounts the weaker near-term outlook.

GoodRx Holdings, Inc. (NASDAQ:GDRX) offers a consumer-focused digital healthcare platform that provides free consumer access to convenient medical provider consultations through telehealth, reduced prices for brand and generic medications, and extensive healthcare research and information.

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Disclosure: None. This article is originally published at Insider Monkey.