TD Cowen lifts Hims & Hers stock target to $44, maintains Buy rating

On Tuesday, TD Cowen exhibited confidence in Hims & Hers Health, Inc. (NYSE:HIMS), as the firm’s analyst Jonna Kim increased the price target for the company’s stock to $44.00, up significantly from the previous target of $28.00. The Buy rating on the stock remains unchanged.

The adjustment in the price target comes amid expectations of potential volatility for Hims & Hers stock. The analyst cited the current challenges the company faces due to the shortage of GLP-1 drugs, which are used in various treatments. Despite these short-term concerns, the analyst’s outlook for Hims & Hers remains positive, emphasizing the company’s prospects for growth.

Kim’s analysis suggests that the company’s strategic expansion into personalized services, specialty areas, and scaling operations positions it well for future success. The positive sentiment is based on Hims & Hers’ ability to adapt and evolve in a dynamic healthcare market.

However, Kim also pointed out possible near-term obstacles for Hims & Hers, noting that compounded GLP-1 commercial dosages might no longer be available after the first quarter of 2025. This situation could present challenges for the company as it navigates the evolving landscape of drug availability and regulation.

In summary, TD Cowen’s revised price target for Hims & Hers reflects a strong belief in the company’s long-term growth trajectory, despite acknowledging the potential for short-term turbulence due to market conditions affecting drug supply. The firm maintains a Buy rating on the stock, signaling continued support for the company’s strategic direction and market position.

In other recent news, Hims & Hers Health, Inc. reported strong fourth-quarter financial results, prompting Needham to significantly raise its price target to $61 and maintain a Buy rating. The company anticipates a sustained revenue stream from weight loss products through fiscal year 2025, projecting $725 million in revenue for this segment. Leerink Partners also adjusted its price target to $40, citing the resolution of the semaglutide shortage as a factor that could enhance the company’s growth potential. Despite these promising developments, Leerink maintained a Market Perform rating due to lingering uncertainties about growth vectors.

Piper Sandler raised its price target to $35 while keeping a Neutral stance, expressing caution about uncertainties anticipated for 2025. Morgan Stanley (NYSE:MS) maintained an Equalweight rating with a $60 target, noting the weight loss segment’s potential to outpace overall growth by 2025. The firm emphasized the importance of strategic initiatives in the competitive weight loss sector. Analysts from these firms highlighted the company’s focus on personalized weight loss treatments, which are expected to drive future growth. As Hims & Hers expands its health and wellness offerings, investors are closely monitoring its strategic moves in the digital health space.

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