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On Tuesday, TD Cowen analysts adjusted the price target for Hims & Hers Health, Inc. (NYSE:HIMS) shares, increasing it from $30.00 to $38.00, while keeping a Hold rating on the stock. The firm recognized the company’s distinct position in the market, citing its trusted brand and personalized product offerings. However, they noted the challenges Hims & Hers faces in achieving significant financial outperformance throughout the year.
Analysts at TD Cowen expressed caution regarding the company’s ability to consistently surpass expectations, given the tougher comparisons expected as the year advances. They also highlighted the increasing competition in the distribution of branded GLP-1 medications, such as Wegovy, by other telehealth platforms and pharmacies.
The report detailed that non-GLP-1 revenue, which encompasses core and oral weight loss medication, along with subscriber growth, saw a year-over-year increase of 30%. According to InvestingPro data, the company’s overall revenue growth reached an impressive 69.32% in the last twelve months, with total revenue of $1.48 billion. Meanwhile, the core non-weight loss business grew in the mid-20% range, a moderation from previous quarters. TD Cowen also pointed out a slowdown in quarterly net additions, with approximately 135,000 new subscribers in the first quarter of 2025, down from around 180,000 in both the fourth and third quarters of 2024.
The analysts attributed the deceleration in subscriber growth to the inherently higher customer acquisition costs associated with weight loss specialties compared to those with lower acquisition costs, such as hair loss treatments. In their comments, TD Cowen stated they would continue to maintain a Hold rating on Hims & Hers stock as they observe the company’s strategic shift away from compounded GLP-1s and assess consumer behavior in the face of macroeconomic uncertainties.
In other recent news, Hims & Hers Health, Inc. reported first-quarter revenues that exceeded expectations, reaching $586 million, surpassing both guidance and consensus estimates. Despite this strong performance, the company’s second-quarter revenue guidance of $530-$540 million fell short of market expectations. Analysts from Needham maintained a Buy rating with a $61 price target, highlighting the company’s robust first-quarter performance, especially in the weight loss segment, and its long-term growth strategy aiming for $6.5 billion in revenue by 2030. Meanwhile, BofA Securities maintained an Underperform rating with a $26 target, expressing caution over economic impacts on GLP-1 revenue and the company’s second-quarter outlook.
Truist Securities kept a Hold rating with a $33 price target, noting the company’s better-than-expected first-quarter results driven by GLP-1 offerings, but also pointing out the anticipated decline in GLP-1 revenues for the second quarter. Leerink Partners adjusted its price target for Hims & Hers to $42, acknowledging the company’s positive profit outlook while maintaining a Market Perform rating. The firm emphasized the ongoing shift towards next-generation GLP-1 sales and the company’s partnership with Novo Nordisk (NYSE:NVO) as significant factors in its assessment.
Hims & Hers has set ambitious targets for 2030, with plans to achieve a 22.5% compound annual growth rate in revenue and approximately 33% EBITDA CAGR. The company reaffirmed its weight management guidance despite changes in its relationship with Wegovy, a weight management drug. As the company continues to expand its product offerings and partnerships, investors are closely monitoring these developments to gauge future profitability and growth potential.
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