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On Wednesday, Truist Securities updated its stance on Hims & Hers Health Inc. (NYSE:HIMS), raising the price target to $39.00 from the previous $24.00, while keeping a Hold rating on the shares. The adjustment followed a comprehensive discussion with the company’s management regarding their fourth-quarter 2024 performance and future prospects.
The dialogue with Hims & Hers covered various topics, including the company’s results for the last quarter of 2024, the potential in their weight loss solutions, and guidelines concerning the compounding of personalized GLP-1 medications. Additionally, updates on the core business were provided, offering insights into the company’s current operations and strategic direction.
Truist Securities’ analyst Jailendra Singh stated, "We had a post-quarterly call with HIMS to discuss 4Q24 results, puts and takes in weight loss solution outlook, guidelines around compounding personalized GLP-1s, and updates on the core business, among other topics." This conversation informed the firm’s decision to revise the price target.
The increase in the price target to $39 reflects a more optimistic view of the company’s value, despite the Hold rating indicating that Truist Securities advises investors to maintain their current position without buying more shares or selling existing holdings.
The adjustment by Truist Securities comes as investors seek to gauge the performance and future growth potential of Hims & Hers, a telehealth company that provides personalized health and wellness solutions. The company has been actively expanding its offerings, aiming to cater to a broader market and meet the evolving needs of its customer base.
In other recent news, Hims & Hers Health, Inc. has reported significant developments that have caught the attention of various analyst firms. The company delivered strong fourth-quarter financial results, prompting Needham to increase its price target to $61 while maintaining a Buy rating. Piper Sandler also raised its target to $35 due to the robust quarterly performance but retained a Neutral stance, citing uncertainties for 2025. Meanwhile, TD Cowen expressed confidence by lifting the price target to $44 and maintaining a Buy rating, despite acknowledging potential short-term challenges related to drug supply issues.
Leerink Partners increased its price target to $40, maintaining a Market Perform rating, and noted that the resolution of the semaglutide shortage allows the company to focus on growth potential. Morgan Stanley (NYSE:MS) kept its price target at $60 with an Equalweight rating, highlighting the company’s focus on weight loss treatments, which are expected to grow significantly by 2025. Analysts have pointed out the company’s strategic expansion into personalized services and specialty areas, which could position it well for future success despite the evolving landscape of drug availability and regulation.
Hims & Hers has set its fiscal year 2025 guidance for weight management revenue at over $725 million, surpassing consensus expectations. This forecast includes contributions from personalized semaglutide, oral weight loss products, and generic liraglutide. As the company continues to expand its health and wellness offerings, investors are closely watching how these strategic initiatives will play out in the competitive digital health space.
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