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On Tuesday, Morgan Stanley (NYSE:MS) maintained its Equalweight rating on Hims & Hers Health, Inc. (NYSE: HIMS) with a steady price target of $60.00. The firm’s analysts highlighted the company’s focus on weight loss treatments, including personalized GLP-1 and oral medications, which are expected to outpace the company’s overall growth rate by 2025.
Morgan Stanley’s analysis pointed out that the weight loss segment of Hims & Hers’ business is subject to debate within the investment community. According to the analysts, this sector is likely to be valued at a lower multiple compared to the company’s core offerings until the long-term potential becomes more evident.
The firm’s commentary comes as Hims & Hers continues to expand its portfolio of health and wellness solutions. The company, which provides direct-to-consumer products and services, has been diversifying its offerings to capture a broader market share in the growing digital health space.
The price target set by Morgan Stanley suggests a level of confidence in the company’s current valuation and future prospects. The target is maintained despite the uncertainty surrounding the weight loss segment, indicating a belief in the overall stability and potential of Hims & Hers.
Investors are expected to watch closely how the market responds to the company’s strategic initiatives, particularly in the competitive weight loss sector. As Hims & Hers works to clarify the opportunities within this segment, the market’s valuation of this part of the business will be an area of focus for analysts and shareholders alike.
In other recent news, Hims & Hers Health, Inc. reported its fourth-quarter 2024 earnings with revenue reaching $481 million, surpassing expectations of $469.33 million. This marked a significant 95% increase year-over-year. However, the company’s EPS fell short, coming in at $0.11 compared to the forecasted $0.17. Despite this earnings miss, the company provided optimistic guidance for 2025, projecting revenues between $2.3 and $2.4 billion and adjusted EBITDA between $270 and $320 million.
Analyst reactions were mixed following these announcements. BTIG maintained a Buy rating and an $85 price target, citing the company’s robust revenue growth driven by its GLP-1 offerings. Conversely, BofA Securities retained an Underperform rating with a $21 price target, expressing skepticism about the company’s ability to meet its ambitious revenue growth forecasts. Citi raised its price target from $25 to $27 but maintained a Sell rating, questioning the sustainability of Hims & Hers’ growth in the weight loss segment.
Leerink Partners also maintained a Market Perform rating with a $24 price target, noting that while revenue exceeded expectations, EBITDA fell short. The firm highlighted the potential for growth in semaglutide products but cautioned about variables affecting profitability. Overall, these developments reflect differing views on Hims & Hers’ growth trajectory and future prospects among analysts.
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