GoodRx Holdings Inc (NASDAQ:GDRX) shares fell more than 3% Tuesday and are down over 10% Thursday following the announcement that Scott Wagner was appointed Interim Chief Executive Officer.
Reacting to the news, BofA analysts reiterated a Buy rating and $9 price target on the stock. They stated that the interim CEO has growth scaling experience, but they need to hear more.
"We still need to hear more about Wagner's plans for the business as he settles into the GoodRx interim CEO role, including the ongoing focus on core growth as the Kroger (NYSE:KR) dispute annualizes," the analysts wrote. "At least from Wagner's background his ability to scale growth should fit with where GDRX is in its corporate life cycle, although we also need to see the drivers behind being interim CEO."
"While the company didn't formally update guidance, commentary around the start of the year is encouraging. Management noted execution on margin efficiency and Monthly Active Consumers in the expected range, which should be taken as a positive," they added.
At Morgan Stanley, analysts kept an Equal-weight rating and $6 price target on GDRX shares, stating that Wagner adds experience in technology and helping companies scale.
"It's been a difficult stretch for GDRX (-66% in the last 12 months vs. the digital health group -11%) and the leadership change could help provide a shot in the arm, although execution on growing the business profitably will be key," wrote the analysts.