Hims & Hers stock faces competition concerns despite positive BofA view

Published 15/10/2025, 15:56
Hims & Hers stock faces competition concerns despite positive BofA view

Investing.com - Bank of America maintained its Underperform rating on Hims & Hers Health (NYSE:HIMS) despite viewing the company’s latest product launch positively, according to a research note released Wednesday.

The firm acknowledged the official launch of Hims & Hers’ menopause and perimenopause offering as an incremental positive that expands the company’s total addressable market and enhances its Hers brand in a category with growing demand.

BofA previously estimated the menopause market could represent 2-4 million incremental patients, implying a multi-billion dollar addressable market for the company to target.

The Hers brand has expanded significantly over the past two years, starting with dermatology and hair loss treatments, with its revenue stream particularly bolstered by strong traction in the weight loss category among women.

For financial contributions, BofA projects the broader hormone replacement therapy offering could provide modest contributions of $5-10 million in the fourth quarter, with more meaningful growth anticipated into 2026.

In other recent news, Hims & Hers Health, Inc. has announced the launch of perimenopause and menopause treatment options on its platform, offering personalized plans with medications like estradiol and progesterone. This expansion targets a significant market, with around 1.3 million women in the U.S. experiencing menopause annually, presenting a major growth opportunity for the company. Additionally, a survey by Hims & Hers revealed that 94% of customers rate their telehealth care as equal to or better than in-person consultations, underscoring the company’s commitment to quality service.

BofA Securities has maintained its Underperform rating and a $28 price target for Hims & Hers, citing concerns over weak order trends. The firm expects third-quarter revenue to align with consensus estimates but highlights deferred revenue as a significant factor. September sales data indicated a 16% year-over-year decline in orders, raising concerns about the company’s trajectory into the fourth quarter. Despite these challenges, the company remains focused on scaling its platform through recent service expansions.

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