Fed’s Powell opens door to potential rate cuts at Jackson Hole
On Tuesday, BTIG reaffirmed its positive stance on Hims and Hers Health Inc. (NYSE:HIMS), maintaining a Buy rating and an $85.00 price target on the company’s shares. The stock has demonstrated remarkable performance, with a 439% return over the past year, though InvestingPro analysis suggests the stock is currently trading above its Fair Value after this strong rally. The telehealth company reported impressive fourth-quarter results the previous day, with revenue reaching $481.1 million, marking a 95% increase year-over-year. This figure surpassed both BTIG’s and consensus estimates, which were $474 million and $470 million, respectively. The company maintains robust financial health with an impressive 81.13% gross margin and a healthy current ratio of 2.14, according to InvestingPro data.
The company’s adjusted EBITDA for the quarter was reported at $54.1 million, which was slightly below BTIG’s expectation of $55.2 million but above the consensus estimate of $54 million. Looking ahead, Hims and Hers provided revenue and adjusted EBITDA guidance for 2025 that exceeded previous estimates from BTIG and FactSet. The company forecasts revenues between $2.3 and $2.4 billion, compared to BTIG’s estimate of $2.2 billion and the consensus of $2.1 billion. Adjusted EBITDA is projected to be between $270 and $320 million, which is higher than the previous estimates of $264 million and $268 million.
The company’s compounded GLP-1 offering, which includes treatments for weight loss, was a significant contributor to the 2024 revenue, adding approximately $225 million, or about 15% of the total revenue. For 2025, Hims and Hers anticipates the weight loss specialty to contribute over $725 million in revenue, accounting for roughly 31% of the total revenue at the midpoint of the guidance. This figure includes revenue from oral medications and personalized doses of semaglutide and liraglutide, despite the company’s plans to discontinue offering commercially available dosages of semaglutide on its platform after the first quarter of 2025.
Furthermore, Hims and Hers expects a generic version of semaglutide to enter the U.S. market in the early 2030s, a projection with which BTIG analysts concur. The company’s strategic focus on expanding its weight loss specialty offerings appears to be a key driver of its robust revenue growth and optimistic financial outlook. With a market capitalization of $11.18 billion and strong revenue growth of 56.7% in the last twelve months, HIMS continues to demonstrate significant momentum. For deeper insights into HIMS’s valuation and growth prospects, including 17 additional ProTips and comprehensive financial analysis, visit InvestingPro.
In other recent news, Hims & Hers Health, Inc. reported its fourth-quarter 2024 earnings, revealing mixed results. The company achieved a revenue of $481 million, surpassing expectations of $469.33 million, but its earnings per share (EPS) fell short at $0.11 compared to the forecasted $0.17. For the full year, revenue grew by 69% to reach $1.5 billion, demonstrating significant growth. Despite the revenue beat, the earnings miss raised investor concerns, as highlighted by the 18.03% drop in the company’s stock price in aftermarket trading. Looking ahead, Hims & Hers provided guidance for Q1 2025, expecting revenue between $520 million and $540 million, with a full-year 2025 revenue projection ranging from $2.3 billion to $2.4 billion.
Additionally, Citi analyst Daniel Grosslight adjusted the price target for Hims & Hers to $27, up from $25, while maintaining a Sell rating. This adjustment followed the company’s earnings call, which highlighted the sustainability of its weight loss offerings. Notably, GLP-1s, including semaglutide, contributed over $225 million to the company’s revenue, accounting for 15% of the total revenue. Citi remains cautious about the company’s revenue guidance, which projects a year-over-year growth of 56-63%, requiring significant growth in oral medications and generic liraglutide sales.
Hims & Hers is also focusing on expanding its healthcare offerings and infrastructure, with plans to integrate lab diagnostic capabilities and increase personalized treatment options. The company aims to generate at least $725 million in revenue from its weight loss segment in 2025. These developments reflect Hims & Hers’ ongoing efforts to grow its platform and expand its product offerings in the healthcare sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.