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On Wednesday, Morgan Stanley (NYSE:MS) analysts maintained their Equalweight rating on Hims and Hers stock (NYSE:HIMS) with a price target of $40, placing it within the broader analyst range of $25-$85. Trading at $54.73, the stock currently appears overvalued according to InvestingPro analysis. This decision follows the company’s announcement of its acquisition of Zava, a strategic move that aligns with its recent $1 billion convertible senior notes offering and the hiring of COO Nader Kabbani, who brings international operational experience.
Hims and Hers aims to complete the Zava acquisition in the second half of 2025, with expectations for it to contribute positively to earnings by 2026. The company’s management had previously indicated plans for international expansion in its Q1 shareholder letter and through its recent convertible offering.
The acquisition of Zava is part of Hims and Hers’ broader strategy to enhance its growth profile. While detailed information about the acquisition remains limited, discussions are ongoing about its potential impact on the company’s gross margin mix and vertical integration opportunities.
Hims and Hers’ management has set ambitious targets for 2030, aiming for $6.5 billion in revenue and $1.3 billion in EBITDA. The recent acquisition is seen as a step toward achieving these goals, although analysts note that the current stock technicals may be outpacing the company’s fundamentals.
In other recent news, Hims and Hers announced its acquisition of ZAVA, a European telehealth provider, marking a strategic move to expand its presence internationally. The company plans to extend its services to countries like the UK, Germany, France, and Ireland, aiming to offer personalized care in various health sectors. The acquisition is anticipated to become accretive by 2026, with completion expected in the second half of 2025. Analysts from TD Cowen and Truist Securities maintained a Hold rating on Hims and Hers, with price targets of $38.00 and $45.00, respectively, while Citi maintained a Sell rating with a $30.00 target. Leerink Partners reiterated a Market Perform rating with a $42.00 target, noting potential integration challenges. Meanwhile, BofA Securities analysts maintained an Underperform rating with a $28.00 target, citing concerns about order growth slowdown and international expansion risks. Despite differing opinions, analysts agree that the acquisition aligns with Hims and Hers’ strategy to broaden its geographic reach. The company raised substantial debt to support this expansion, and analysts are keenly observing how these developments will impact Hims and Hers’ financial performance and market position.
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