GoodRx Holdings Analyst Turns Bullish Ahead Of Q1 Earnings

GoodRx Holdings Inc GDRX got an upgrade last month from Wells Fargo analyst.

Despite being a “re-accelerating high-growth, high-margin company,” the stock was trading at a discount both to its peers and its historical average, according to KeyBanc Capital Markets.

The GoodRx Holdings Club Analyst: Scott Schoenhaus upgraded the rating for GoodRx Holdings to Overweight while revising the price target to $9.

The GoodRx Holdings Club Thesis: Signs of the company’s app downloads have been “encouraging,” having accelerated in February and remaining stable in March, despite tougher comps, Schoenhaus said in the upgrade note.

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Monthly active users (MAUs) climbed around 8.7% sequentially in February and about 2.4% in March, “which we view as a positive indication on transactions,” the analyst wrote.

According to the data from the proprietary KeyBank card holders, Gold subscribers picked up around 2% sequentially in March, Schoenhaus stated. “This is prior to the new Publix addition, where Gold membership is being rolled out across more than 1,200 locations,” he added.

GDRX Price Action: Shares of GoodRx Holdings had risen by 2.08% to $6.88 at the time of publication on Wednesday.

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