GoodRx initiated with an Outperform at Leerink

Leerink initiated coverage of GoodRx with an Outperform rating and $8 price target. Despite what has been a tumultuous pathway since coming public, both for the operational performance and the stock, the firm believes GoodRx can still settle into a steady high-single digit growth trajectory with EBITDA margins approaching 30% and improving free cash flow generation. Leerink does not see that algorithm as factored into current valuation, with more credence given to headline risks either real or perceived. GoodRx remains the clear market leader in the prescription discount space, which even with evolving reimbursement models should retain an important source of out-of-pocket savings based on variation in plan design and geographic pharmacy density, the firm adds.