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On Tuesday, Leerink Partners maintained their Market Perform rating for Hims & Hers Health, Inc. (NYSE:HIMS), with a consistent price target of $40.00. The company’s first-quarter results sparked discussions among investors, with revenues surpassing expectations. According to Leerink analysts, the EBITDA performance was particularly notable, reflecting the company’s effective marketing strategies and the development of its weight management brand.
Despite the positive aspects of the report, Leerink expressed concerns about the second-quarter guidance, which suggests revenue figures below both Leerink’s and consensus estimates, and EBITDA forecasts that only match expectations. The firm indicated that further details are necessary to fully assess the implications for the stock, especially considering the unchanged full-year revenue guidance and a modest increase in EBITDA projections that fall short of the first-quarter’s outperformance. InvestingPro analysis reveals the company maintains strong financial health with an impressive 79.5% gross profit margin and operates with minimal debt, earning an overall "GREAT" financial health score.
The company’s partnership with Novo Nordisk (NYSE:NVO) on the rollout of semaglutide, a medication for diabetes and weight management, was also highlighted as a key point of interest. Leerink anticipates that the upcoming conference call will provide valuable insights into the company’s strategies and the potential impact of this collaboration.
Hims & Hers has set ambitious long-term goals for itself, aiming for a 22.5% compound annual growth rate (CAGR) in revenue and approximately 33% EBITDA CAGR by 2030 compared to the fiscal year 2025 midpoint. These targets reflect the company’s confidence in its growth trajectory and profitability, despite the evolving nature of its business model. As the company continues to navigate its expansion and operational strategies, stakeholders are advised to stay tuned for further updates.
In other recent news, Hims & Hers Health, Inc. reported a remarkable 111% increase in revenue for the first quarter of 2025, reaching $586 million, significantly surpassing the consensus estimate. However, the company fell short of its earnings per share (EPS) forecast, reporting $0.20 against an expected $0.23. Morgan Stanley (NYSE:MS) maintained its Equalweight rating for the company, with a price target of $40, following these results. Despite the revenue beat, the company’s guidance for the second quarter’s revenue was slightly below analyst expectations, indicating potential moderation in growth.
The company continues to expand its subscriber base, which grew by 38% year-over-year to nearly 2.4 million. Strategic partnerships, such as the collaboration with Novo Nordisk for weight loss products, are expected to contribute significantly to future revenue. Hims & Hers also plans to launch new hormone-related products by the end of the year, aiming to broaden its product offerings. The company’s gross margin for the first quarter was below expectations, marking a second consecutive miss, which has raised concerns about future growth in certain categories. Nonetheless, Hims & Hers has raised its full-year 2025 EBITDA outlook, showcasing confidence in its long-term growth strategy.
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