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Investing.com - BofA Securities has reiterated its Underperform rating and $28.00 price target on Hims and Hers (NYSE:HIMS) following the company’s weaker-than-expected quarterly results. According to InvestingPro data, HIMS trades at a significant premium with a P/E ratio of 76.5x, despite showing strong revenue growth of 86% over the last twelve months.
The research firm cited several near-term headwinds facing the telehealth company, including lack of sequential growth in its core business, which will place greater pressure on its GLP-1 business to compensate for the deficit in the second half of the year.
BofA Securities also noted that HIMS’ international acquisition adds regulatory complexity and will require substantial resources to implement, while the company is simultaneously entering an investment cycle that will limit cash flow generation in the near term.
The firm observed that multi-30-day subscribers remained flat quarter-over-quarter, potentially indicating that the previously estimated 10 percentage point contribution to growth from subscribers shifting from 30-day to multi-30-day plans may be materializing.
BofA Securities maintained its $28 price objective based on approximately 22 times calendar year 2025 estimated EV/EBITDA multiple, slightly higher than its previous 21 times multiple, reflecting somewhat higher peer multiples.
In other recent news, Hims & Hers released its second-quarter 2025 financial results, reporting revenue of $544.8 million. This figure represents a 73% growth year-over-year but fell short of both BTIG’s estimate of $560.9 million and the consensus estimate of $552 million. The company did, however, exceed expectations in adjusted EBITDA, reaching $82.2 million against BTIG’s forecast of $80.4 million and a consensus of $73 million. Additionally, Hims & Hers reported earnings per share (EPS) of $0.17, surpassing the expected $0.15, which marked a 13.33% surprise. Despite the revenue miss, Leerink Partners raised its price target for the company to $43.00, citing strong margin performance. The firm maintained a Market Perform rating on the stock. BTIG also kept its Buy rating, with a price target of $85.00, despite a slowdown in GLP-1 revenue. These developments reflect a mixed quarter for Hims & Hers, with notable strengths in profitability amid revenue challenges.
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