Bank of America Securities analyst Allen Lutz maintained a Sell rating on GoodRx Holdings (GDRX – Research Report) yesterday and set a price target of $4.75.
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Allen Lutz’s rating is based on several factors that contribute to a cautious outlook for GoodRx Holdings. Despite the recent announcement of a partnership with Hy-Vee to enhance e-commerce capabilities, the scope of this development is currently limited to one pharmacy. While this integration could potentially increase convenience for consumers and lead to more prescriptions being filled through GoodRx, the impact is considered minor at this stage.
Additionally, Lutz expresses concerns about broader industry challenges that could affect GoodRx’s performance. Notably, changes in the pharmacy benefit manager (PBM) to pharmacy reimbursement landscape and a trend of retail pharmacy closures present significant risks. These factors, combined with the limited immediate impact of the Hy-Vee partnership, underpin the decision to maintain a Sell rating on the stock.
GDRX’s price has also changed moderately for the past six months – from $6.880 to $4.290, which is a -37.65% drop .