Hims and Hers stock rating maintained at Hold by TD Cowen amid slowing growth

Investing.com - TD Cowen maintained its Hold rating and $48.00 price target on Hims and Hers (NYSE:HIMS) on Tuesday, citing decelerating growth trends and challenging comparisons ahead. The company, currently valued at $10.93 billion, has demonstrated remarkable revenue growth of 89% over the last twelve months, though InvestingPro data shows it’s trading at a relatively high P/E ratio of 61.

The research firm noted that while demand for compounded GLP-1 products remains solid, it has slowed compared to the first half of 2025. TD Cowen also observed moderation in the company’s core hims.com business.

The firm expects Hims and Hers’ third-quarter earnings to align with consensus estimates and anticipates the company will reiterate its full-year guidance when it reports results.

TD Cowen highlighted that Hims and Hers shares have declined 22% since the last earnings report, reflecting investor concerns about the company’s growth trajectory.

Short interest in the telehealth company remains elevated at approximately 33% of float, indicating continued bearish sentiment among some investors despite the stock’s recent pullback.

In other recent news, Hims & Hers Health has made notable strides in expanding its healthcare offerings. The company announced the launch of perimenopause and menopause treatment options on its platform, providing personalized treatment plans that include medications like estradiol and progesterone. This expansion is aimed at addressing symptoms such as hot flashes and sleep disturbances, targeting a significant market opportunity as approximately 1.3 million women in the United States experience menopause annually.

Meanwhile, Bank of America maintained its Underperform rating on Hims & Hers, despite acknowledging the positive impact of the new product launch in expanding the company’s addressable market. KeyBanc initiated coverage with a Sector Weight rating, highlighting the company’s 2.4 million subscriber base and opportunities for geographic and product expansion. However, the company faces potential challenges, as President Trump recently promised significant price cuts for weight loss medications, which could impact Hims & Hers’ pricing strategy.

These developments reflect the company’s ongoing efforts to grow its brand and adapt to a competitive market landscape.

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