BofA raises Hims & Hers stock target to $28, retains underperform

On Tuesday, BofA Securities adjusted its outlook on Hims & Hers Health, Inc. (NYSE:HIMS), increasing the price target to $28 from $26 while maintaining an Underperform rating on the company’s shares. The move followed the firm’s earnings report for the quarter.

Stifel analysts provided insight into the potential financial trajectories for Hims & Hers, citing two possible scenarios that could impact the company’s full-year revenue. In the first scenario, expansion of the personalized semaglutide business could enable Hims & Hers to reach or surpass the higher end of their full-year guidance. Analysts estimate that this approach could yield over $900 million in GLP-1 revenue by 2025. However, they also cautioned that this strategy might bring back litigation risks.

Alternatively, the second scenario involves reinvesting in the company’s core offerings. Although this might result in achieving only the lower end of the guidance range, it could also lead to a stabilization or boost in core business trends.

Analysts noted that Hims & Hers has considerable flexibility in its business strategy and that forthcoming data in the next months will be crucial for gaining a clearer understanding of the company’s direction. Despite the potential for increased litigation risk, the revised price target reflects improved operating leverage, based on a 20-21x CY25E EV/EBITDA multiple.

The firm’s outlook remains cautious due to the uncertain macroeconomic environment, and analysts will continue to monitor the company’s strategic decisions closely. The updated price target represents BofA Securities’ assessment of the company’s financial prospects and operational efficiency. InvestingPro subscribers have access to 18 additional investment tips and comprehensive analysis for HIMS, including detailed valuation metrics and growth forecasts.

In other recent news, Hims & Hers Health, Inc. has seen a variety of developments that are capturing investor attention. The company’s first-quarter performance exceeded expectations, with revenue reaching $586 million, surpassing both guidance and consensus estimates. Despite this strong start, the second-quarter revenue guidance of $530-$540 million has fallen short of market expectations, potentially due to broader economic trends and changes in GLP-1 revenue. Analysts from BofA Securities continue to rate the stock as Underperform with a $26 target, while Truist Securities maintains a Hold rating with a $33 target, noting mixed financial results. Meanwhile, Cowen analysts have raised their price target to $38 but maintain a Hold rating, citing challenges in achieving significant financial outperformance. Leerink Partners increased their price target to $42, highlighting a positive trajectory driven by next-generation GLP-1 sales and partnerships. On a more optimistic note, Needham analysts uphold a Buy rating and a $61 price target, emphasizing the company’s robust first-quarter performance and long-term growth strategy aiming for a $6.5 billion revenue target by 2030. Each firm provides a unique perspective on Hims & Hers, reflecting a range of expectations and strategies for the company’s future.

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