Procore stock price target raised to $90 from Goldman Sachs on stabilizing growth
Investing.com - Needham maintained its Hold rating on Hims and Hers (NYSE:HIMS) stock on Tuesday, citing concerns about near-term investment impacts despite the company’s expansion plans. The stock currently trades at a P/E ratio of 57, significantly above market averages, with a high beta of 2.25 indicating substantial price volatility.
The healthcare company reported third-quarter results that exceeded expectations, but its fourth-quarter guidance fell below consensus estimates, creating mixed investor sentiment. InvestingPro data shows HIMS has achieved impressive revenue growth of 88.7% over the last twelve months, with an overall financial health score rated as "GREAT."
Hims and Hers outlined an ambitious roadmap for category expansion, including plans to launch low testosterone treatments in the third quarter of 2025, menopause products in the fourth quarter of 2025, whole body lab testing before year-end, and longevity services in 2026.
The company also announced geographic expansion plans that include entering markets in Spain and Canada, among other locations.
While Needham acknowledged these initiatives as potentially important for long-term success, the firm expressed concern that increased investments and potential growing pains could create "a difficult setup for the stock heading into FY26 as growth decelerates and margin expansion slows." According to InvestingPro’s Fair Value assessment, HIMS appears overvalued at current levels, potentially supporting Needham’s cautious stance.InvestingPro offers 15 additional tips on HIMS stock, including detailed analysis of its financial health, valuation metrics, and growth prospects. Access comprehensive Pro Research Reports covering 1,400+ top stocks with actionable intelligence for smarter investing decisions.
In other recent news, Hims & Hers Health reported its third-quarter earnings, showcasing a mixed financial performance. The company exceeded revenue expectations with $600 million, surpassing the forecast of $580.37 million, representing a 3.38% positive surprise. However, the earnings per share (EPS) of $0.06 fell short of the forecasted $0.10, marking a 40% negative surprise. BTIG maintained a Buy rating and a price target of $85.00, highlighting the company’s strong performance with a 49% year-over-year revenue growth and adjusted EBITDA of $78.4 million, surpassing guidance. Canaccord Genuity also reiterated its Buy rating with a $68.00 price target, noting significant subscriber growth, particularly in multi-condition subscribers. Meanwhile, BofA Securities raised its price target to $32.00 from $28.00 but maintained an Underperform rating, citing a mixed quarter with revenue and EBITDA exceeding expectations despite a decline in total subscriber numbers. The Sexual Health business is identified as a factor in the company’s core performance weakness. These developments reflect a varied outlook among analysts regarding Hims & Hers Health’s future performance.
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