Bank of America analysts upgraded shares of Doximity, Inc. (DOCS) to Neutral and downgraded GoodRx Holdings, Inc. (GDRX) to Underperform in a note Tuesday focused on healthcare technology and distribution stocks.
Analysts explained the firm is double-downgrading shares of GoodRx due to the uncertainty created by recent announcements from some of the largest stakeholders in the pharmacy ecosystem.
The firm's new price target for the stock is $4.50 per share, representing ~8.5x CY24 EBITDA.
Bank of America is upgrading shares of DOCS as the company's earnings expectations have been "appropriately reset" and pharmaceutical budgets "could begin to improve over the next year as pressure from higher interest rates begin to ease."
Overall, BofA's outlook for healthcare technology and distribution in 2024 is "a tale of sub-segments," with the bank seeing reasons to remain optimistic on distributors.
"We expect the digital health adoption may congregate around tools to control GLP-1 spend," said analysts. "If Trump/Biden emerge as the candidates in 2024, we would see limited impact on multiples as both candidate's healthcare agendas are well known."