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Investing.com - Morgan Stanley (NYSE:MS) has reiterated its Equalweight rating and $40.00 price target on Hims and Hers (NYSE:HIMS) following signs of decelerating business momentum based on third-party data. According to InvestingPro data, HIMS is currently trading above its Fair Value, with the stock showing remarkable performance of 120% return over the past year and a market capitalization of $10.72 billion.
The financial services firm reports that app downloads for the telehealth company declined 8% year-over-year in June, with monthly downloads now at approximately 185,000. This figure falls below levels seen before the company launched compounded GLP-1 in May 2024.
Second quarter 2025 app download growth increased 6% year-over-year but declined 17% sequentially compared to the previous quarter, according to Morgan Stanley’s analysis of third-party data.
The proportion of Hers downloads reached 40% of total downloads in the past month, representing a significant increase from 26% in the year-ago period. This shift indicates changing usage patterns across the company’s gender-focused platforms.
Unique web traffic for Hims and Hers increased 5% year-over-year in June, which Morgan Stanley characterized as "well off the recent pace." The firm also noted that mobile traffic now accounts for 80% of total online traffic to the telehealth provider’s platforms.
In other recent news, Hims & Hers Health has announced plans to expand its digital weight loss program into Canada in 2026, aligning with the anticipated availability of generic semaglutide in the market. This move is part of the company’s broader international growth strategy following its acquisition of the European digital health platform, ZAVA. The expansion aims to offer lower-cost alternatives to branded GLP-1 medications, currently priced over C$200 per month in Canada. Analysts at Morgan Stanley have maintained an Equalweight rating, while Citi reiterated a Sell rating, both noting the potential impact of this expansion on the company’s growth. Truist Securities also reiterated a Hold rating, highlighting recent price increases for Hims & Hers’ compounded semaglutide subscriptions. These subscription changes, including the discontinuation of a one-month option, suggest strategic pricing actions in response to market trends. The Canadian market entry represents a significant step for Hims & Hers as it seeks to diversify its revenue base and leverage its marketing capabilities. The company is working to ensure compliance with Canadian laws and regulations, collaborating with an approved partner to facilitate the expansion.
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