GoodRx News: What a GDRX Stock Downgrade Means for Investors

Shares of GoodRx (NASDAQ:GDRX) stock are taking a hit on Wednesday. And it’s no surprise after one analyst adjusted their outlook for the company, and another firm slashed its price target.

Magnifying glass looking at the GoodRx logo on the company Website

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JPMorgan analyst Doug Anmuth downgraded GDRX stock from “neutral” to “underweight,” with a $29 price target Wednesday morning. The move comes after an announcement from Amazon (NASDAQ:AMZN) regarding the launch of Amazon Pharmacy. In fact, a handful of large pharmacy retailers were crushed on Tuesday due to the news from Amazon.

That said, Anmuth believes that Amazon Pharmacy can cut GoodRx’s revenue and EBITDA by 7% and 11%, respectively, next year. And by 2024, Anmuth sees revenues falling 30% and EBITDA falling 39% due to Amazon Pharmacy.

Additionally, Deutsche Bank dropped its price target on GDRX stock, but held its rating as a hold. For this move, the firm said GoodRx’s valuation for 2021 revenue and EBITDA are too high.

GoodRx made its Wall Street debut earlier this year, but has truly struggled since the beginning of October. In fact, GDRX stock shares are down more than 32% year to date, and are nearly 27% lower since the Amazon Pharmacy announcement.

GDRX stock was down 5.3% as of Wednesday morning.

On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Nick Clarkson is a web editor at InvestorPlace.

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