Health and Healthcare

What Analysts Are Saying About GoodRx After the Quiet Period

Chris Lange

Published: October 19, 2020 12:18 pm

GoodRx Holdings Inc. (NASDAQ: GDRX) had a very hot initial public last month, but after the excitement settled down analysts started to release their reports on the stock. The post-IPO quiet period is over, and now analysts are rushing to make calls on the stock. For the most part, sentiment seems relatively positive.

The company originally priced its IPO at $33 per share, above the expected price range of $24 to $28. The stock ran up massively on the first day of trading, actually entering the market above $46. However, since then, investors have been relatively undecided on the stock.

Some quick background: GoodRx provides Americans will health care services and prescriptions through its digital platform. Essentially, this platform connects consumers with affordable and convenient health care products and services. These include telehealth, mail-order prescriptions, doctor visits and lab tests. The firm had 4.4 million monthly active consumers and 15 million monthly visitors for the second quarter of 2020.

Shares of GoodRx have reached as high as $64 since the stock came public, but they came crashing back down almost immediately. Many analysts have come out with targets that aren’t nearly this generous.

Here’s what analysts said about GoodRx after the quiet period:

• Citigroup initiated coverage with a Buy rating and $70 price target.
• Cowen initiated it with an Outperform rating and a $63 price target.
• Credit Suisse started it as Outperform with a $60 target price.
• Evercore ISI initiated it as Outperform with a $65 target price.
• JPMorgan initiated coverage with a Neutral rating and a $59 price target.
• Morgan Stanley started coverage at Overweight with a $57 price target.
• RBC started it with a Sector Perform rating and a $55 target price.
• SVB Leerink started coverage at Outperform with a $61 price target.
• BofA Securities initiated coverage at Neutral with a $58 price objective.

GoodRx stock traded down about 4% on Monday to $50.75, in a post-IPO range of $45.50 to $64.22.