Bank of America maintains an Underperform rating on GoodRx (GDRX) and reduces its price target to $2.60, reflecting cautious sentiment on the company’s growth trajectory and valuation. The move underscores ongoing skepticism about the digital pharmacy platform’s long-term scalability.
- Bank of America maintains an Underperform rating on GoodRx (GDRX)
- Price target reduced to $2.60, reflecting revised growth expectations
- Q4 2025 revenue growth slowed to 4.2% year-over-year
- Adjusted EBITDA margins declined to 27.5% from 30.1% YoY
- Downgrade signals caution on digital pharmacy scalability and margin sustainability
- Impact likely to affect investor sentiment in healthcare technology and pharma services sectors
Bank of America has reaffirmed its Underperform rating on GoodRx Holdings Inc. (GDRX), trimming its price target to $2.60 from a prior level, signaling persistent concerns over the company's near-term performance and valuation. The update comes amid a broader reassessment of digital health platforms and their ability to sustain revenue growth amid rising competition and margin pressures. The revised price target implies a projected decline of approximately 34% from GDRX’s current trading range, underscoring the bank’s bearish outlook. This adjustment follows a series of macroeconomic headwinds, including slower prescription volume growth and increased regulatory scrutiny in the pharmacy benefit space. GoodRx’s core business—providing consumers with access to discounted drug prices through its platform—faces pressure from evolving payer dynamics and shifting consumer behavior. Key financial indicators show mixed results: while GDRX reported revenue of $238 million for Q4 2025, growth slowed to 4.2% year-over-year, below expectations. Adjusted EBITDA margins declined to 27.5%, down from 30.1% in the same quarter of the prior year, indicating margin compression. These figures suggest challenges in scaling operations efficiently without compromising profitability. The downgrade is expected to influence investor positioning, particularly among growth-oriented portfolios focused on healthcare technology and pharmaceutical services. Traders are likely to monitor upcoming earnings calls for further clarity on cost controls and new revenue streams, such as the company’s expanding health plan offerings and value-based care initiatives.