SVB Leerink Sees ‘Cheaper Way’ To Pharma Digital Marketing With This Stock

SVB Leerink initiated coverage on OptimizeRx Corporation (NASDAQ: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 (NYSE: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.