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Investing.com - Canaccord Genuity has maintained its Buy rating and $68.00 price target on Hims and Hers (NYSE:HIMS) despite the stock’s recent 20% decline since late July. The company’s shares have shown remarkable strength with a 227% return over the past year, according to InvestingPro data, though current valuations suggest the stock may be trading above its Fair Value.
The research firm notes that while HIMS shares have more than doubled year-to-date, recent market concerns about slowing core growth have pressured the stock. Canaccord believes these concerns stem from a short-term perspective that fails to account for the company’s structural advantages and expanding growth vectors. InvestingPro data reveals impressive revenue growth of 89% in the last twelve months, with the company maintaining a strong financial health score of 3.6 out of 5.
The transition of on-demand sexual health subscribers to daily solutions is expected to impact core growth for several quarters, but Canaccord highlights this shift improves subscriber stickiness and will create easier comparisons in 2026.
Regarding GLP-1 weight loss treatments, Canaccord expresses increasing confidence in the durability of this revenue stream, citing additional regulatory clarity from the FDA and a constructive ruling in the Eli Lilly vs. Willow Health case.
Canaccord’s current model projects low double-digit annualized core US revenue growth over the next five years, including mid-single-digit growth in fiscal years 2029 and 2030, with multiple potential growth levers including new specialties, international expansion, compounded GLP-1s, and generic semaglutide. Trading at a P/E ratio of 66x, the stock reflects high growth expectations. Discover more insights and 16 additional ProTips with a subscription to InvestingPro.
In other recent news, Hims and Hers experienced a slowdown in revenue during the second quarter of 2025, as reported by BTIG. This deceleration is attributed to the end of the grace period for bulk compounded GLP-1s, which significantly impacted the company’s revenue stream. Despite this, BTIG has maintained its Buy rating on the company, setting a price target of $85.00. Conversely, BofA Securities has reiterated its Underperform rating with a $28.00 price target, citing increased competition in the direct-to-consumer healthcare space and mixed signals for the company’s GLP-1 franchise. The firm highlighted that the number of competitors has grown significantly, with new entrants like Remedy Meds projecting substantial revenue. In a strategic move, Hims & Hers has signed a 15-year lease for a new facility in New Albany, Ohio, which will serve various operational purposes. Meanwhile, GoodRx announced a collaboration with Novo Nordisk to offer Ozempic and Wegovy at a reduced price, marking a significant development in the GLP-1 medication market. This partnership allows eligible self-paying patients to access these medications for $499 per month at numerous retail pharmacies.
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