Procore stock price target raised to $90 from Goldman Sachs on stabilizing growth
Investing.com - Leerink Partners has raised its price target on Hims and Hers (NYSE:HIMS) to $46.00 from $43.00 while maintaining a Market Perform rating on the stock. The new target sits close to HIMS’ current trading price of $44.39, with InvestingPro data showing the stock has delivered an impressive 113.82% return over the past year despite recent volatility.
The price target increase follows what Leerink described as a "solid" quarter for the telehealth company, despite some near-term challenges including changes in sexual dysfunction dosing and headwinds from facility shipping location changes. The company has maintained strong financial performance with revenue growth of 88.69% in the last twelve months, according to InvestingPro data.
Leerink noted that management expressed high confidence in its ability to navigate these challenges while meeting or exceeding its fiscal year 2030 targets, though fourth-quarter guidance came in below market expectations. This confidence is supported by HIMS’ strong financial health, with a current ratio of 4.98 indicating liquid assets comfortably exceed short-term obligations.
The research firm’s updated price target reflects higher estimates, partially due to a higher depreciation and amortization add-back, while maintaining the same target multiple of approximately 25 times calendar year 2026 EV/EBITDA.
Leerink also highlighted uncertainty surrounding a potential re-partnership with Novo, raising questions about the profit potential from distributing a brand drug in what it called a competitive market with "high revenue dollar potential at low margins."
In other recent news, Hims and Hers reported third-quarter earnings that exceeded expectations, with revenue reaching $599 million, marking a 49% year-over-year growth. This performance surpassed both company guidance of $570-590 million and consensus estimates of $580 million. Adjusted EBITDA for the quarter was $78.4 million, a 53% increase year-over-year, also exceeding guidance of $60-70 million. Despite these strong results, the company’s fourth-quarter guidance fell below consensus estimates, leading to mixed investor sentiment.
Analysts have weighed in on these developments, with BTIG maintaining a Buy rating and a price target of $85, while Canaccord Genuity also reiterated a Buy rating with a $68 price target. BofA Securities raised its price target from $28 to $32 but maintained an Underperform rating, citing concerns over subscriber numbers and ongoing challenges in the Sexual Health business. KeyBanc Capital Markets kept a Sector Weight rating, describing Hims and Hers as a "2H26 story" due to current subscriber growth challenges and investments in diagnostics. Needham maintained a Hold rating, expressing concerns about near-term investment impacts despite expansion plans.
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