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On Tuesday, Truist Securities reaffirmed its Hold rating on Hims and Hers stock (NYSE:HIMS), maintaining a price target of $45. Trading at $58.69 with a market cap of $12.82 billion, the stock appears overvalued according to InvestingPro analysis. The decision follows the company’s recent acquisition in the UK, a move seen as part of its strategy to expand internationally.
Hims and Hers recently acquired a direct-to-consumer telehealth company in the UK, aiming to enhance its presence in the region. The acquisition is expected to contribute approximately 2% to the company’s 2025 revenue, according to Truist Securities analysts. With impressive revenue growth of 86% in the last twelve months and operating with moderate debt levels, this acquisition comes after Hims and Hers raised $1 billion in principal notes in May, providing the company with increased financial flexibility.
The acquisition allows Hims and Hers to diversify its revenue streams geographically while staying focused on its core offerings. The company will leverage ZAVA’s platform, which has 1.3 million active consumers, compared to Hims and Hers’ 2.366 million active subscribers as of the first quarter of 2025. The analysts believe the company has opportunities to up-sell and cross-sell its offerings to ZAVA’s consumers.
Truist Securities analysts suggest that Hims and Hers may still have the financial capability to pursue additional acquisitions. This potential for further deals highlights the company’s ongoing efforts to strengthen its market position and expand its reach.
In other recent news, Hims & Hers Health, Inc. has announced its acquisition of ZAVA, a prominent digital health platform in Europe. This strategic move aims to expand Hims & Hers’ operations into the UK, Germany, France, and Ireland, with plans to extend to additional European markets. The acquisition is anticipated to enhance the company’s international reach and is expected to contribute positively to its financial performance by 2026. Despite the potential benefits, Citi analysts have maintained a Sell rating on Hims & Hers stock, while Leerink Partners reiterated a Market Perform rating, both expressing caution regarding integration challenges. BofA Securities also maintained an Underperform rating, citing a slowdown in order growth and potential risks associated with international expansion.
Additionally, Hims & Hers has introduced a new pricing option for Wegovy®, a prescription obesity treatment, at $549 per month for new customers. This limited-time offer includes a comprehensive weight loss program and reflects the company’s commitment to making obesity care more accessible. The promotion will end on June 30, 2025, with standard rates applying thereafter. These developments highlight Hims & Hers’ ongoing efforts to expand its market presence and enhance its service offerings.
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