Telemedicine GoodRx Has Potential To Excel, Close Valuation Gap By 2025, Analyst Says
Portfolio Pulse from Vandana Singh
Wells Fargo upgraded GoodRx Holdings Inc (NASDAQ:GDRX) from Equal Weight to Overweight with a new price target of $10, citing good visibility into 2024 guidance and potential for exceeding estimates and valuation multiples by 2025. GoodRx's strategic initiatives and partnerships are expected to improve revenue visibility and reduce downside risks, with recent data showing an increase in web traffic compared to its competitor, SingleCare. The company's fourth-quarter FY23 results and FY24 revenue guidance were above estimates, indicating a strong performance outlook.
March 25, 2024 | 6:00 pm
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Wells Fargo upgraded GoodRx to Overweight with a price target of $10, highlighting the company's potential to exceed 2024 estimates and improve valuation multiples by 2025.
The upgrade by Wells Fargo, based on GoodRx's strong FY23 results, positive FY24 revenue guidance, and strategic initiatives, suggests a favorable outlook for the stock. The increase in web traffic compared to competitors and the potential for exceeding consensus estimates in 2024 and 2025 indicate a strong performance trajectory, likely leading to a positive short-term impact on GDRX's stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100