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GoodRx downgraded to Underperform from Buy at BofA

BofA analyst Michael Cherny downgraded GoodRx (GDRX) to Underperform from Buy with a price target of $4.50, down from $8. The downgrade is driven by uncertainty created by recent announcements from some of the largest stakeholders in the pharmacy ecosystem, and the outlook for GoodRx is more uncertain than at any point during the company’s short life as a public company, the analyst tells investors in a research note. The firm sees downside risk to GoodRx’s earnings, with risks beginning in 2025 if CVS’ (CVS) CostVantage model is broadly adopted.

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