Morgan Stanley Favors GoodRx (GDRX) and Healthcare Tech Over Managed Care for 2026 Citing Strong Market-Beating Potential

Company Overview - GoodRx Holdings Inc. (NASDAQ:GDRX) provides tools for consumers to compare prices and save on prescription drug purchases in the US [5] Financial Performance - In Q3 2025, GoodRx reported total revenue of $196 million, a slight increase of $1 million year-over-year [3] - The Manufacturer Solutions segment was a key growth driver, increasing by 54% to reach $43.4 million [3] - The Prescription Transaction segment experienced a 9% decline, attributed to Rite Aid store closures and lower transaction volumes [3] Market Outlook - Morgan Stanley lowered GoodRx's price target to $4 from $5 while maintaining an Equal Weight rating, indicating a cautious stance on managed care due to regulatory shifts and reimbursement challenges [1] - Barclays initiated coverage of GoodRx with an Underweight rating and a $3 price target, reflecting a neutral outlook on the US healthcare technology and distribution sector [2] Strategic Initiatives - GoodRx has formed partnerships with pharmaceutical companies like Novo Nordisk and Amgen to enhance direct-to-consumer affordability, offering significant discounts on medications [4] - The platform now features over 200 brand programs, including nearly 80 unique cash-pay prices [4] Sector Insights - Morgan Stanley highlighted a strong environment for market-beating returns in healthcare tech and provider stocks for 2026, contrasting with its cautious view on managed care [1]