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Shares of GoodRx (NASDAQ:GDRX) have been down 14% in early afternoon buying and selling Tuesday after BofA reportedly downgraded the inventory to underperform from purchase, citing dangers created by rivals’ initiatives.
GoodRx shares opened at $6.13 earlier than dipping to a session low of $5.45 in morning buying and selling. The inventory just lately offered at $5.75 per share at round 12:50 p.m. ET.
BofA mentioned in its word that it noticed “near-term dangers to valuation and intermediate-term dangers to its earnings profile” for GoodRx, citing a latest announcement by CVS that would “scale back the volatility” of PBM reimbursement charges. The funding financial institution added that sees “draw back dangers to earnings starting in 2025 if the CVS mannequin is broadly adopted,” based on a Bloomberg report.
BofA additionally cited just lately launched drug low cost packages by OptumRx and CarelonRx together with Walgreens Rx Financial savings Finder as further aggressive dangers, Bloomberg mentioned.
The financial institution lowered its worth goal from $8 to $4.50.