• SVB Leerink initiated coverage on OptimizeRx Corporation OPRX with a buy rating and a price target of $38, implying an upside of 36%.
  • The analysts say OptimizeRx is the largest EHR-embedded messaging network and enjoys a solid financial profile of 30%+ top-line growth and mid-teens adjusted EBITDA margins.
  • Despite this, the valuation is cheap. The stock currently trades at an ~2.5 turn discount to pharma digital marketing peers and an ~10 turn discount to its closest rival Doximity Inc DOCS.
  • SVB believes this discount was warranted for legacy OPRX, which had less revenue visibility and an inconsistent margin profile.
  • But it has steadily increased with the new management team, the first guidance in history in 4Q FY21, and a dependable ~300bps+ annual EBITDA margin expansion going forward. 
  • SVB views OptimizeRx as a cheaper way to play the same secular trend as Doximity.
  • Price Action: OPRX shares are up 4.83% at $29.29 during the market session on the last check Friday.


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