Jefferies Cuts GoodRx Price Target to $2.75, Cites 14% User Decline
Jefferies downgraded GoodRx to Hold from Buy on January 22 and cut its price target to $2.75 from $5.25, citing a 14% year-over-year decline in monthly active consumers and a 9% drop in prescription revenues after 800 Rite Aid pharmacy closures. The firm forecasts flat prescription revenues, which comprise roughly 69% of GoodRx’s expected revenue, and muted overall revenue and EBITDA growth.
1. Jefferies Downgrade and Price Target Cut
On January 22, Jefferies lowered its rating on GoodRx from Buy to Hold and reduced the 12-month price target from $5.25 to $2.75, reflecting concerns over recent performance in the prescription segment.
2. Impact of Rite Aid Closures
The bankruptcy and mid-2025 closure of 800 Rite Aid stores triggered a 14% year-over-year drop in GoodRx’s monthly active consumers and a 9% decline in prescription revenues, directly hurting its core business.
3. Revenue and EBITDA Outlook
Jefferies expects prescription revenues—about 69% of total revenue—to remain flat year-over-year and projects overall revenue and EBITDA growth will stay muted, keeping the valuation multiple stagnant in the short term.
4. Strategic Considerations
With a heavy reliance on its prescription discount segment, GoodRx faces pressure to diversify revenue sources or accelerate consumer acquisition strategies to offset the downturn caused by pharmacy closures.