- GoodRx -4.7% pre-market after J.P. Morgan's Doug Anmuth becomes the first analyst to tag the stock with a bearish call, downgrading shares to Underweight with a $29 price target, citing pressure from Amazon's new plan to allow U.S. customers to order prescription medications for home delivery, including free delivery for Amazon Prime members.
- The news sent the stock reeling yesterday, -22.5% to mark a fresh low since the September IPO.
- JPM's Ammuth sees Amazon's Prime Rx plan and discount card program taking a 7% bite out of GoodRx's revenues to $698M in 2021 and 11% of EBITDA to $212M; by 2024, the hit grows to 30% in revenues to $1.31B and 39% EBITDA of $466M.
- Deutsche Bank cuts its price target on GoodRx to $31 from $50 while maintaining its Hold rating, noting the most challenging problem for the stock is the current valuation at 15x on 2021 revenue and 42x on 2021 EBITDA.
https://seekingalpha.com/news/3637426-goodrx-cut-j-p-morgan-on-new-amazon-plan
Wednesday, November 18, 2020
GoodRx cut at J.P. Morgan on new Amazon plan
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