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Investing.com - Leerink Partners has raised its price target on Hims and Hers (NYSE:HIMS) to $43.00 from $42.00 while maintaining a Market Perform rating on the stock. The company has shown remarkable momentum, with a 255% return over the past year and current trading at $63.35. According to InvestingPro analysis, the stock is currently trading above its Fair Value, with analysts setting targets between $28 and $85.
The research firm cited the company’s impressive margin performance despite facing revenue challenges in its latest quarter. Hims and Hers reported its first revenue miss, attributed to both an expected sequential decline in GLP-1 revenue and an unexpected drop in core revenue outside of GLP-1 products. The company maintains a robust gross profit margin of 77%, with revenue growing at 86% year-over-year to $1.78 billion in the last twelve months.
Leerink Partners noted concerns about how the company will re-accelerate core revenue growth, particularly in light of ongoing headwinds from erectile dysfunction formulation transitions. The firm also pointed out that while ZAVA contributions will factor into revenue, the unchanged total guidance of "at least $725MM" suggests slowdowns in other areas of the business.
The price target increase reflects an adjustment in Leerink’s target multiple from approximately 24x to 25x CY26 EV/EBITDA, acknowledging the company’s steady margin rate progression. This adjustment comes despite questions about how various revenue components will perform in the second half of the year.
Leerink Partners maintained its Market Perform rating, citing "non-fundamental stock volatility" that continues to impact shares, while acknowledging that Hims and Hers has built "an effective mousetrap that still is in the evolution phase."
In other recent news, Hims and Hers Health Inc. reported its second-quarter 2025 earnings, revealing a notable performance in earnings per share (EPS). The company achieved an EPS of $0.17, which exceeded the analysts’ forecast of $0.15, resulting in a 13.33% surprise. However, the revenue figures fell slightly short of expectations, with the company reporting $544.8 million compared to the anticipated $549.87 million. Despite the revenue miss, the earnings report was well-received. These developments highlight the company’s ability to surpass earnings expectations, even as revenue projections were not fully met. Investors and analysts will likely continue to monitor the company’s financial performance in the upcoming quarters.
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