OptimizeRx Gets New Price Target After Major Forecast Beat
I'm planning to trade this digital healthcare name aggressively as the market sees a slight reversal in rotational action.
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The market was looking a little hungover on Monday morning as investors digest the surprisingly strong move on Friday and Wall Street enjoys its last week of summer vacation.
There is a small reversal of Friday’s rotational action, with small caps lagging a little and the Magnificent Seven MAGS exhibiting better relative strength. Breadth is running a bit weak with around 2,000 gainers to 3,300 decliners. There are only around 130 names hitting new 12-month highs.
My best advice right now is to stay focused on individual stock picking and good chart setups. Don’t worry too much about the indices. There is rotational action that distorts the big picture. The bears are still yammering about all the negatives out there, but the reality is that there are plenty of stocks that are in good shape both fundamentally and technically.
I’m reviewing charts and watching for opportunities to add to some favorite names on weaknesses.
A new name on my radar on Monday is OptimizeRx OPRX. OPRX is a healthcare technology company that provides digital health services that connect pharmaceutical companies, healthcare providers and patients. It does many things that drug reps used to do for drug companies.
Its primary focus is to enhance medication adherence, improve patient outcomes and streamline communication using a data-driven, AI-powered platform that is integrated into healthcare workflows. OptimizeRx delivers targeted messages, educational content and financial support tools such as co-pay and discount cards to healthcare providers and patients through its digital platform. A doctor using the health records of a patient might receive real-time alerts about a medication’s benefits or patient assistance programs during a patient visit.
OPRX’s healthcare provider marketing program delivers clinical and financial information to providers at the point of care, increasing prescription relevance and its direct-to-consumer (DTC) marketing uses "micro-neighborhood targeting" to reach patients with tailored messages before key care moments. This achieves an average 28:1 prescription campaign ROI. The OPRX platform connects over 2 million U.S. healthcare providers and millions of patients through a proprietary network.
The company is enjoying very fast growth with revenue jumping 55% in the second quarter to $29.2 million and eps of $0.24 versus estimates of just $0.02. The company expects 2025 EPS of $0.65, which is 100% growth. It trades with a trailing P/E of 23.
Roth Capital raised its price target for OPRX to $27 from $22 following the very strong second quarter report, which was sharply above forecasts. The analyst states that OptimizeRx is well-positioned for accelerated growth in 2025 and beyond. Current revenue growth guidance is still muted at just 13% to 17%.
There are four analysts with buy ratings on the stock with an average target price of $21.67 versus the current price of $17.15.
The stock trades quite thinly and can be volatile with a large spread. My game plan is to watch for opportunities to accumulate as the chart develops and to trade it aggressively.
At the time of publication, DePorre was long OPTX.
