GoodRx (GDRX) Stock: $9 Price Target From Wells Fargo

By Amit Chowdhry ● May 12, 2022
  • The shares of GoodRx Holdings Inc. (NASDAQ: GDRX) have received a $9 price target from Wells Fargo. These are the details.

The shares of GoodRx Holdings Inc. (NASDAQ: GDRX) have received a $9 price target from Wells Fargo. And Wells Fargo analyst Stan Berenshteyn is maintaining an Equal-Weight rating on the shares.

GoodRx Holdings, Inc. (NASDAQ: GDRX) reported Q1 EPS of $0.10, $0.02 better than the analyst estimate of $0.08. Revenue for the quarter came in at $203.3 million versus the consensus estimate of $200.2 million. In terms of guidance, GoodRx expects a Q2 2022 revenue of $190 million, compared to the consensus of $215.6 million.

Berenshteyn cited the results and the suspension of the full-year guidance following details that a grocer – which accounts for 25% of Rx volumes for GoodRx – has significantly limited GoodRx’s ability to offer discounts to members using Kroger pharmacies due to ongoing PBM contract negotiations. And Berenshteyn’s channel checks evidenced that Kroger may have picked a preferred Rx discount vendor, which is being actively offered to replace discount cards/BIN numbers that are currently not working at Kroger locations such as GoodRx.

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