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Investing.com - TD Cowen has raised its price target on Hims and Hers (NYSE:HIMS) to $48.00 from $43.00 while maintaining a Hold rating on the telehealth company’s stock. The company’s stock has shown remarkable momentum, delivering a 255% return over the past year and currently trading at $57.83. According to InvestingPro analysis, the stock appears overvalued at current levels, with analyst targets ranging from $28 to $85.
The firm cited Hims and Hers’ infrastructure development as a key factor in its decision, noting the company is making appropriate investments in new medical specialties, laboratory testing capabilities, and technology while pursuing international expansion opportunities. These investments appear to be paying off, with revenue growing 86% year-over-year and maintaining a healthy gross profit margin of 77%.
Despite the positive long-term outlook, TD Cowen identified several near-term challenges that could impact the company’s performance, including expected business investments over the next year that may pressure profit margins.
The analyst also highlighted specific headwinds facing the company, including the impact of transitioning subscribers to daily offerings within its sexual health segment and more difficult year-over-year comparisons expected in the second half of 2025.
TD Cowen’s new $48 price target is based on approximately 4x FY2 EV/Sales, though the firm maintained its Hold rating due to the identified near-term dynamics and elevated market expectations for the stock.
In other recent news, Hims and Hers reported its second-quarter 2025 earnings, revealing a notable earnings per share (EPS) beat with an EPS of $0.17, surpassing the forecasted $0.15. Despite this positive EPS result, the company’s revenue of $544.8 million fell short of the expected $549.87 million. The revenue growth was 73% year-over-year, although it did not meet the consensus estimates. The second-quarter adjusted EBITDA exceeded expectations, reaching $82.2 million, which was above the analyst expectations of $80.4 million from BTIG and the $73 million consensus.
Hims and Hers maintained its 2025 guidance, incorporating an anticipated $50 million revenue contribution from its recent Zava acquisition. Truist Securities reiterated a Hold rating on the stock, citing softening core growth. BofA Securities maintained an Underperform rating, pointing to near-term headwinds and a lack of sequential growth in the core business. Meanwhile, BTIG held a Buy rating, despite acknowledging a slowdown in the GLP-1 segment. Leerink Partners adjusted its price target to $43, emphasizing the company’s margin strength despite revenue challenges.
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