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On Thursday, Morgan Stanley (NYSE:MS) reaffirmed an Equalweight rating and a $40.00 price target for Hims & Hers Health, Inc. (NYSE:HIMS), following an analysis of the company’s app download trends and sales data. The firm noted that the health and wellness brand saw a 25% year-over-year increase in app downloads for April, though there was a slight 2% month-over-month decrease. This decline follows a more significant 21% drop in March and contrasts with a 2% month-over-month growth the company experienced the previous year.
Despite the recent peak in January with approximately 253,000 downloads, the monthly figure for app downloads stood around 190,000. The cumulative total of app downloads has now reached 5.2 million. Morgan Stanley pointed out that while these numbers reflect a general trend, they may not precisely align with the company’s official results.
Sales data observed by Second Measure indicated a 67% year-over-year growth for Hims & Hers in the second quarter to date, which is slightly below the company’s guidance of 71%. The weekly growth rate was reported at 47% for the week ending May 11th, marking the lowest level since the previous November.
Hims & Hers had previously projected second-quarter revenue to be slightly below analyst expectations, targeting a range between $530 million and $550 million. Morgan Stanley’s current price target of $40.00 remains unchanged, as does their Equalweight rating on the stock.
In other recent news, Hims & Hers Health, Inc. has issued $1 billion in convertible senior notes, set to mature in 2030, as part of a strategy to raise capital. The company initially offered $870 million in notes, later exercising an option for an additional $130 million. These notes carry a 0.00% interest rate and were sold in a private offering to qualified institutional buyers. In another development, Hims & Hers announced plans for a $450 million convertible notes offering, aimed at accelerating global expansion and strategic acquisitions. Additionally, Truist Securities has increased its price target for Hims & Hers to $45, maintaining a Hold rating, following mixed first-quarter earnings influenced by GLP-1 sales and revised revenue guidance. Meanwhile, Citi has reaffirmed a Sell rating on Hims & Hers, with a $30 price target, citing potential challenges from Evernorth’s new benefit option for weight loss medications. This new plan by Evernorth could impact Hims & Hers’ partnership with NovoCare, as it offers more cost-effective options that may encourage employer coverage. These developments underscore the dynamic financial and strategic landscape for Hims & Hers Health.
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