Bank of America just raised its EUR/USD forecast
On Wednesday, Canaccord Genuity analyst Maria Ripps increased the price target for Hims & Hers Health, Inc. (NYSE:HIMS) to $68.00, rising from the previous target of $38.00, and sustained a Buy rating on the shares. Following a successful Super Bowl advertisement and the confirmation of Robert F. Kennedy Jr. as the Health and Human Services (HHS) Secretary, HIMS stock soared over 40% last week. Year to date, the company’s shares have surged more than 140%.
Ripps noted that the company’s forward growth expectations might now be significantly elevated, which could lead to increased risk of near-term volatility, especially as the company is set to introduce its FY25 guidance. Despite the ongoing semaglutide shortage, which has an uncertain resolution timeline, Ripps expressed confidence in Hims & Hers’ ability to continue its growth through personalized dosing and a more favorable regulatory environment.
The analyst also highlighted the potential long-term benefits of the company’s first Super Bowl commercial. The advertisement is expected to bolster Hims & Hers’ reputation as an accessible and affordable digital health platform, which may contribute to sustaining an elevated growth trajectory over time. Ripps provided a framework to assess the potential impact of the recent surge in traffic on key operating metrics. While the full upside has not been factored into the current forecast, there is an anticipation that estimates may gradually rise throughout the year.
Despite the expanded valuation, Ripps classified the stock as solidly within the ’Rule of 50+’ category for 2025. This categorization indicates a favorable outlook for companies with combined revenue growth and profit margins exceeding 50%. Any near-term subscriber additions to Hims & Hers are expected to have a lasting impact on the business model due to the retention advantages of a subscription model that caters to non-acute, chronic conditions.
In other recent news, Hims & Hers Health has been the subject of various analyst notes. BTIG has raised the company’s stock price target to $85, maintaining a buy rating, while Morgan Stanley (NYSE:MS) has downgraded the stock rating from Overweight to Equalweight, but increased the price target to $60. BofA Securities, however, has maintained an Underperform rating on Hims & Hers with a steady price target of $18.00, expressing concerns about the future of the company’s compounded GLP-1 products due to pharmaceutical manufacturers’ defense tactics.
In addition to analyst notes, Hims & Hers has been in the spotlight due to a controversial Super Bowl advertisement for its generic weight-loss drugs. Despite criticism from the Pharmaceutical (TADAWUL:2070) Research and Manufacturers of America (PhRMA) and some US senators, the company has defended its advertising approach.
The company has also capitalized on the momentum from its Super Bowl ad, resulting in a significant uptick in demand for its weight loss products. These recent developments indicate that Hims & Hers is actively engaging with both the market and its critics, as it continues to navigate the direct-to-consumer health market.
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