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GoodRx Downgraded to Outperform by Raymond James
ByAinvest
Friday, Aug 8, 2025 8:57 pm ET1min read
GoodRx has been downgraded to Outperform from Strong Buy by Raymond James, with a price target of $5, down from $9. The company's Q2 results were in line with expectations, but its guidance was cut due to Rite Aid store closures and pharmacy benefit managers' actions on integrated savings programs. The firm believes investors are frustrated with GoodRx's multiple guidance cuts since the May 2024 analyst day.
GoodRx, a leading digital healthcare platform, has been downgraded to Outperform from Strong Buy by Raymond James. The move comes on the heels of the company's Q2 results, which were in line with expectations but saw a cut in guidance due to Rite Aid store closures and actions by pharmacy benefit managers on integrated savings programs. The downgrade reflects investor frustration with GoodRx's multiple guidance cuts since the May 2024 analyst day [1].The company reported $203.1 million in revenue last quarter, falling short of analyst expectations. Adjusted net income also missed the mark. While GoodRx's prescription savings business faced pressure, with active users down 14% and prescription transaction revenue slipping 3%, the pharma manufacturer solutions segment surged 32% from last year. The company also bought back over 10 million shares worth $46.4 million, signaling confidence in its future prospects [1].
The downgrade by Raymond James follows a series of challenges faced by GoodRx. The firm expects to grow this year but acknowledges that the bankruptcy of Rite Aid will likely shave up to $40 million off revenue. Despite these headwinds, management remains optimistic and sticks to full-year EBITDA goals between $265 and $275 million [1].
The broader digital healthcare space is feeling the pinch from fewer consumer prescriptions and big changes at retail pharmacies. GoodRx's focus on pharma solutions highlights a broader trend: firms are flocking to more stable, industry-facing businesses as consumer habits shift. Investors are on the lookout for companies that can pivot and deliver consistent growth in this reshaping market [1].
References:
[1] https://finimize.com/content/goodrx-misses-targets-but-pharma-unit-powers-growth
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