GoodRx rallies as Raymond James upgrades following inaugural investor day

GoodRx Holdings

16/05/2024 17:38

** Shares of GoodRx  GDRX.O  up 11.7% at $8.12 on Thurs as
Raymond James upgrades to "outperform" from "market perform" in
wake of digital healthcare platform's first investor day since
its 2020 IPO
    ** GDRX shares tracking biggest daily pct gain since Feb 28,
hit over 2-mth high
    ** Raymond James sets PT at $10, implying ~38% upside to
GDRX shares last close
    ** Following investor day event on Weds, RJ analyst John
Ransom points to co's reaccelerating rev, improving margins and
more focused strategy
    ** Ransom says while he has been skeptical of GDRX over the
past 2 years, the new management team has brought renewed focus
to the business that prioritizes creating a "symbiotic
relationship" with its retail network, which has stabilized "far
better" than previously anticipated
    ** GDRX's stock on Weds rose 9% after co said it's targeting
over $1 bln of rev and at least 35% EBITDA margin in 2026
    ** Co on Weds also announced new direct prescription
contracting agreement with supermarket chain Kroger  KR.N 
    ** KeyBanc analyst Scott Schoenhaus reiterated "overweight"
rating, saying in note late Weds that rev guidance was ~7% above
consensus of ~$935 mln
    ** Schoenhaus said he came away more positive given "further
clarity on some of the more dynamic industry challenges and
company-specific strategies" in both its prescription
transaction and manufacturing solutions businesses
    ** 11 of 20 analysts rate GDRX "strong buy" or "buy", 8 rate
"hold" while 1 has "sell", per LSEG data, with median PT of
$8.63
    ** With move on the session, shares up 21% YTD and up more
than 50% in past six months

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))