Powell’s speech, Nvidia’s chips, Meta deal - what’s moving markets
On Tuesday, Citi analyst Daniel Grosslight adjusted the price target for Hims & Hers Health, Inc. (NYSE:HIMS) shares to $27.00, up from the previous target of $25.00, while maintaining a Sell rating on the stock. The adjustment follows the company’s fourth-quarter earnings call, which highlighted the sustainability of its weight loss offerings, particularly in light of the FDA’s removal of semaglutide from its shortage list.
During the earnings call, Hims & Hers noted that GLP-1s, which include semaglutide, contributed over $225 million to the company’s revenue, accounting for 15% of its total revenue. This suggests that the fourth-quarter revenue from GLP-1s alone was estimated by Citi to be more than $130 million, indicating minimal sequential growth outside of this category.
Despite semaglutide no longer being in short supply, Citi expresses skepticism about Hims & Hers’ revenue guidance, which projects a year-over-year growth of 56-63%. This guidance is based on the assumption that weight loss products will generate $725 million in revenue. According to Grosslight, this would require a significant increase in the use of oral medications and a ramp-up in generic liraglutide sales in the second half of the year.
While acknowledging Hims & Hers’ potential for growth through category expansion into hormonal therapies, Citi remains cautious. The firm is looking for a more favorable entry point and additional details regarding the company’s growth prospects beyond GLP-1s before altering its rating.
In other recent news, Hims & Hers Health, Inc. reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of $0.11, which fell short of the forecasted $0.17. However, the company exceeded revenue expectations, reporting $481 million against the anticipated $469.33 million. For the full year, revenue grew by 69% to $1.5 billion. Despite the revenue beat, the company’s stock experienced a significant decline following the earnings announcement. Analysts from Canaccord and Morgan Stanley (NYSE:MS) have shown interest in the company’s weight loss offerings, with discussions on the transition beyond commercial semaglutide and the anticipated launch of liraglutide later this year. Hims & Hers plans to expand its healthcare platform, focusing on personalized treatments and integrating new technologies. The company has provided guidance for Q1 2025, expecting revenue between $520 million and $540 million and full-year revenue ranging from $2.3 billion to $2.4 billion. Hims & Hers also aims to enhance its offerings in weight loss, projecting at least $725 million in revenue from this segment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.