GoodRx Holdings one of the most undervalued stocks, Leerink says

GoodRx Holdings

20/11/2024 12:28

** Leerink Partners says digital healthcare platform GoodRx
Holdings'  GDRX.O  shares are significantly undervalued when
accounting for co's profit growth
    ** Market focus after co reported Q3 earnings has been on
revenue growth in prescription marketplace, which is linked with
retail store closures and ongoing negotiations with pharmacy
benefit managers, says brokerage
    ** "However, there was almost no focus on the continued
pacing of EBITDA growth, which has consistently outpaced
expectations so far in FY24 and which is expected to remain
steady even with potential market-driven revenue softness," says
Leerink
    ** Contracts with Cigna's Express Scripts, CVS' Caremark and
others will contribute to co's FY25 earnings, brokerage says
    ** Brokerage says GDRX is trading at a discount compared
with stocks in NASDAQ 100 index  .NDX  
    ** As of last close, stock has fallen 36.7% YTD vs ~23% rise
in  .NDX 

 (Reporting by Kamal Choudhury in Bengaluru)
 ((Kamal.Choudhury@thomsonreuters.com;))