Balancing Near-Term Headwinds and Long-Term Growth: Justifying a Buy/High-Risk Rating on Pharma Direct-Led Upside

Citi analyst Daniel Grosslight maintained a Buy rating on GoodRx Holdings yesterday and set a price target of $4.50.

Daniel Grosslight has given his Buy rating due to a combination of factors, balancing a weak near‑term outlook against more attractive long‑term drivers. He notes that while 4Q results were operationally solid, with revenue and adjusted EBITDA exceeding expectations on the back of strong Pharma Direct momentum, guidance for 2026 is muted as management intentionally resets prescription transactions pricing and absorbs margin pressure from business mix shifts.

At the same time, he emphasizes that Pharma Direct is growing rapidly and is expected to expand about 30% year over year in 2026, while subscriptions, including the weight‑loss offering, are returning to growth and should become more meaningful by year‑end. In his view, the current share price already discounts much of the PTR headwind and margin compression, leaving substantial upside as the transition plays out and higher‑growth segments scale, which supports his Buy / High Risk recommendation and sizeable expected return potential.

In another report released yesterday, TD Cowen also assigned a Buy rating to the stock with a $3.00 price target.

GDRX’s price has also changed dramatically for the past six months – from $4.330 to $1.990, which is a -54.04% drop .