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On Tuesday, Piper Sandler analyst Korinne Wolfmeyer adjusted the price target for Hims & Hers Health, Inc. (NYSE:HIMS) shares, increasing it to $35 from the previous $24, while continuing to hold a Neutral rating on the stock. Wolfmeyer’s decision came in the wake of the company’s robust fourth-quarter performance, although the analyst expressed caution due to the uncertainties anticipated for the year 2025.
The company reported strong results in the last quarter, but Piper Sandler remains hesitant to change its stance because of the unpredictable nature of the year ahead. Although Hims & Hers is no longer offering compounded Semaglutide, management expects a significant contribution from the weight loss segment, relying on personalized offerings and Liraglutide. However, the firm acknowledges the lack of clarity in forward-looking projections.
Wolfmeyer pointed out several concerns, such as the potential loss of subscribers, the need for increased marketing efforts, and the possibility of gross margin percentages being affected by competition. Despite these issues, the analyst noted that Hims & Hers is successfully growing its core business and has seen margin expansion. Still, the elevated short interest and the unpredictable behavior of the current retail investor base are factors that contribute to Piper Sandler’s cautious approach.
In summary, while the company has demonstrated solid growth and margin improvements, Piper Sandler advises maintaining a Neutral position due to the various uncertainties and challenges that could affect the company’s performance in the near future. The price target adjustment reflects the company’s recent achievements but also underscores the need for caution moving forward.
In other recent news, Hims & Hers Health, Inc. has been the focus of several analyst updates and financial projections. Needham raised its price target for the company to $61, maintaining a Buy rating, following strong fourth-quarter results. The firm highlighted the company’s robust performance and projected $725 million in weight loss revenue by fiscal year 2025, surpassing previous expectations. Meanwhile, Morgan Stanley (NYSE:MS) kept an Equalweight rating with a $60 target, noting the competitive nature of the weight loss segment but expressing confidence in the company’s overall stability.
Leerink Partners adjusted its price target to $40 from $24, maintaining a Market Perform rating, emphasizing the potential growth following the resolution of the semaglutide shortage. The firm noted uncertainties in growth vectors, particularly concerning the transition from compounded semaglutide to other medications. BofA Securities maintained an Underperform rating with a $21 target, expressing skepticism about the company’s revenue growth forecasts, especially in transitioning to new weight loss treatments.
Leerink also maintained its Market Perform rating with a $24 target after Hims & Hers slightly exceeded revenue estimates but fell short on EBITDA. The firm’s guidance included projections of at least $725 million in revenue from weight management products. These developments highlight the varied perspectives on Hims & Hers’ growth potential and challenges in the weight loss market.
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