Leerink Partners analyst Michael Cherny has maintained their bullish stance on GDRX stock, giving a Buy rating on February 28.
Michael Cherny has given his Buy rating due to a combination of factors that highlight GoodRx Holdings’ potential for profit growth and stability. Despite recent management changes, the company has demonstrated a solid profit generation narrative, with EBITDA margins expected to expand significantly in the upcoming fiscal year. This is indicative of a strong operational model that can support incremental growth even with modest revenue increases.
Furthermore, the new leadership team, with their extensive supply chain experience, is expected to implement strategic initiatives that could accelerate profit growth and address the valuation gap. Although there are areas for improvement, the company’s current trajectory and underlying fundamentals suggest a positive outlook. The consistency in revenue guidance and the focus on enhancing profit margins underpin the Buy rating, as they reflect a promising path forward under the new management’s direction.
In another report released on February 28, Wells Fargo also maintained a Buy rating on the stock with a $8.00 price target.