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On Tuesday, BofA Securities maintained its Underperform rating and $26.00 price target for Hims & Hers Health, Inc. (NYSE:HIMS). The company’s first-quarter performance exceeded expectations with reported revenue reaching $586 million, surpassing both the guidance and consensus, as well as slightly outdoing BofA’s own projection of $583.1 million. Despite this strong quarter, the company’s second-quarter revenue guidance of $530-$540 million falls short of the Street’s expectations, signaling potential impacts from broader economic trends and changes in GLP-1 revenue, previously noted by BofA analysts. While the stock has demonstrated remarkable performance with a 259.48% return over the past year, InvestingPro data reveals it trades at a relatively high P/E ratio of 72.83, suggesting investors should carefully consider valuation metrics. For deeper insights into HIMS’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
Hims & Hers also provided long-term guidance for the year 2030, anticipating revenues to hit at least $6.5 billion with an adjusted EBITDA of at least $1.3 billion. Analysts at BofA are particularly interested in the details of the reaffirmed $2.3-$2.4 billion revenue guidance for the current year, with a close eye on compounded semaglutide’s contribution and the performance of new product launches.
The company highlighted that its revenue and subscriber growth outside of GLP-1 treatments both neared 30% in the first quarter, aligning with BofA’s estimates. Analysts are anticipating further insights on how current economic conditions may be affecting the business during the company’s conference call scheduled for 5 pm. The firm’s stance remains cautious as they await more detailed financial breakdowns and market analysis.
In other recent news, Hims & Hers Health, Inc. reported a substantial increase in revenue for the first quarter of 2025, with a 111% rise year-over-year to $586 million. This figure surpassed both Morgan Stanley (NYSE:MS)’s estimate of $531 million and the consensus estimate of $535 million. However, the company missed its earnings per share forecast, reporting $0.20 against an expected $0.23. Despite the revenue beat, analysts from Leerink and Morgan Stanley maintained their price target of $40, with Morgan Stanley highlighting the company’s effective cost management and sales strategies. Hims & Hers’ partnership with Novo Nordisk (NYSE:NVO) on semaglutide, a diabetes and weight management medication, is anticipated to bring in at least $725 million by 2025. The company provided guidance for the second quarter with revenue expected between $530-$550 million, below analyst expectations, but maintained its full-year revenue target of $2.3-$2.4 billion. Leerink noted concerns about the company’s second-quarter guidance, which suggests revenue below their estimates. Meanwhile, Hims & Hers continues to expand its product offerings, including new hormone-related products expected by year-end.
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