Hims and Hers stock price target raised to $32 from $28 at BofA

Investing.com - BofA Securities has raised its price target on Hims and Hers (NYSE:HIMS) to $32.00 from $28.00 while maintaining an Underperform rating on the telehealth company. The new target still represents significant downside from the current stock price of $44.39, with HIMS trading at a high P/E ratio of 57.

The adjustment follows what BofA describes as a "mixed quarter" for Hims and Hers, with revenue and EBITDA exceeding expectations while total subscriber numbers fell below forecasts. The company’s Sexual Health business is driving weakness in core performance, a trend expected to continue into the first half of 2026. Despite these challenges, InvestingPro data shows impressive revenue growth of 88.7% over the last twelve months, with the company achieving profitability.

BofA noted that subscriber growth was "remarkably weak" this quarter, with investments rising—two dynamics likely to persist for at least the next few quarters. The firm acknowledged that while Hims and Hers is investing for growth, these investments could help differentiate the company from competitors over a longer timeframe.

The price target increase reflects BofA’s decision to roll its valuation framework from 2025 to 2026 while maintaining approximately a 22x multiple, with the 2025 multiple increasing from 22x to 25x. The higher implied multiple indicates "incremental confidence" in the company’s strategy to verticalize its supply chain and invest in new verticals. According to InvestingPro Fair Value analysis, HIMS appears overvalued at current levels, with the stock also trading at a high EV/EBITDA multiple of 65.7.

Despite the price target increase, BofA sees downside risk to 2026 consensus revenue estimates and has lowered its 2026 EBITDA estimates, leading to the maintained Underperform rating. InvestingPro identifies HIMS as having quite volatile stock price movements, with the stock down 5.8% over the past week despite its 113.8% gain over the last year. Subscribers can access 15 additional ProTips and comprehensive research reports that provide deeper insights into HIMS’s financial health and valuation metrics.

In other recent news, Hims & Hers Health reported its third-quarter earnings, showcasing notable financial results. The company achieved revenue of $600 million, surpassing both its own guidance and the consensus forecast of $580.37 million. This represents a 49% year-over-year growth. Despite this revenue success, Hims & Hers fell short in earnings per share (EPS), reporting $0.06 compared to the expected $0.10. Adjusted EBITDA for the quarter was $78.4 million, a 53% increase from the previous year, exceeding guidance.

Analysts have responded positively to these developments, with BTIG maintaining a Buy rating and a price target of $85.00. Canaccord Genuity also reiterated its Buy rating with a $68.00 price target. The company reported strong subscriber growth, with a 40% increase in subscribers excluding on-demand sexual health services and an 80% increase in multi-condition subscribers. These results highlight successful cross-selling efforts within the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.