GoodRx Holdings, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Craig Hettenbach from Morgan Stanley maintained a Hold rating on the stock and has a $5.00 price target.
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Craig Hettenbach’s rating is based on a combination of factors that highlight both the challenges and opportunities facing GoodRx Holdings. The company has experienced a stabilization in estimates, and the risk/reward profile is becoming more appealing after a period of underperformance. However, the primary concern revolves around whether GoodRx can reignite growth in its prescription transactions revenue (PTR), which has been overshadowed by a significant year-over-year decline in monthly active consumers (MACs) due to changes in the retail pharmacy landscape.
Despite these challenges, GoodRx has shown strength in its Pharma Manufacturing Solutions segment, which saw substantial revenue growth driven by consumer direct pricing and early deal closures. The company’s share repurchase program also indicates a commitment to returning value to shareholders. However, the guidance for the fourth quarter suggests a sequential revenue decline, and while the 2025 outlook remains stable, there are potential headwinds and tailwinds that could impact future performance. These mixed signals contribute to the Hold rating, as the balance of risks and opportunities does not strongly favor a buy or sell recommendation at this time.
In another report released today, Mizuho Securities also maintained a Hold rating on the stock with a $4.00 price target.
Based on the recent corporate insider activity of 48 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GDRX in relation to earlier this year.