Analyst Constantine Davides from JMP Securities maintained a Buy rating on OptimizeRx (OPRX – Research Report) and keeping the price target at $8.00.
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Constantine Davides has given his Buy rating due to a combination of factors influencing OptimizeRx’s current market position. One significant reason is the recent urging by the company’s largest shareholder, Whetstone Capital, for the board to consider strategic alternatives, including a potential sale. This recommendation comes at a time when the company is searching for a new permanent CEO, presenting a unique opportunity to reassess and potentially realign its strategic direction.
Additionally, while the acquisition of Medicx was intended to enhance OptimizeRx’s offerings, challenges in the direct-to-consumer market have impacted growth expectations. Despite these challenges, Davides notes that the enterprise value of OptimizeRx is currently undervalued compared to its historical trading multiples. The legacy HCP business, in particular, is seen as a valuable asset due to its integration with leading electronic health record platforms and limited competition. Thus, the combination of strategic potential and undervaluation supports Davides’s Buy rating.
According to TipRanks, Davides is an analyst with an average return of -28.7% and a 28.57% success rate. Davides covers the Healthcare sector, focusing on stocks such as OptimizeRx, Evolent Health, and AMN Healthcare Services.