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

GoodRx Holdings Inc. (NASDAQ:GDRX) is one of the cheap penny stocks to invest in. On December 18, Morgan Stanley lowered the firm’s price target on GoodRx to $4 from $5 and kept an Equal Weight rating on the shares. In a 2026 outlook for the Healthcare Services sector, the firm highlighted a strong environment for market-beating returns within healthcare tech and provider stocks. In contrast, Morgan Stanley remains cautious on managed care and noted that after a weak 2025, the subsector continues to face a storm of regulatory shifts, reimbursement challenges, and rising service usage.

Earlier on December 8, Barclays initiated coverage of GoodRx with an Underweight rating and $3 price target. This decision was made as the firm initiated coverage of the US healthcare technology and distribution sector with an overall neutral outlook, though the firm’s sentiment varies significantly across specific sub-sectors. The firm expressed strong bullish conviction toward drug distributors and cited them as the most attractive segment within the group.

In its Q3 2025 earnings report, GoodRx Holdings highlighted a total revenue of $196 million, which was a slight increase of $1 million year-over-year. The company’s Manufacturer Solutions segment emerged as a primary growth driver, surging 54% to reach $43.4 million. While the overall revenue grew, the Prescription Transaction segment faced a 9% decline, largely due to the completion of Rite Aid store closures and lower transaction volumes within an integrated savings program.

The company made significant strides in the DTC space through high-profile pharmaceutical partnerships. GoodRx announced collaborations with Novo Nordisk to offer Ozempic and Wegovy for $499 per month and with Amgen to provide Repatha at nearly 60% off the retail list price. These initiatives are part of a broader strategy to operationalize D2C affordability, with the platform now hosting over 200 brand programs, including nearly 80 unique cash-pay prices.

GoodRx Holdings Inc. (NASDAQ:GDRX), together with its subsidiaries, offers information and tools that enable consumers to compare prices and save on their prescription drug purchases in the US.

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Disclosure: None. This article is originally published at Insider Monkey.