The sell-off in telemedicine identify GoodRx is overdone, and now is an efficient time to purchase the inventory, in keeping with Citi. Analyst Daniel Grosslight initiated protection on GoodRx with a purchase ranking, noting that the telemedicine firm was created in response to a “advanced and opaque” drug distribution channel for shoppers that’s unlikely to change into much less advanced any time quickly. “In our view, GDRX will proceed to serve a significant function in bringing transparency/consumerism to a traditionally unshopable market,” Grosslight wrote in a Wednesday be aware. GoodRx made its public debut on the Nasdaq in September 2020 , touting reductions on pharmaceuticals. Shares opened at $33 per share, and surged 53% of their first day of buying and selling. Since then, shares have taken a beating, closing at simply $4.36 on Wednesday. They’ve cratered practically 87% this yr. Nonetheless, the analyst mentioned the sell-off is overdone, given the corporate’s giant complete addressable market sized at $50 billion. Along with its concentrate on generic retail pharmaceuticals, GoodRx has not too long ago expanded into branded Rx spending as nicely. Actually, the analyst’s $7 value goal implies shares have greater than 60% upside from Wednesday’s closing value. To make certain, the corporate is coping with challenges such because the fallout from a renegotiation with Kroger, slowing pharmaceutical spending and rising competitors. Regardless, the analyst mentioned he doesn’t imagine these are existential threats. “GDRX has the dimensions to handle these dangers whereas pivoting into quicker rising segments and creating distinctive options (e.g. the not too long ago introduced ESI partnership for industrial members),” Grosslight wrote. “In our view, the market has been too punitive, successfully pricing in no terminal worth,” he added. —CNBC’s Michael Bloom contributed to this report.