Truist Securities maintains Hold rating on Hims and Hers stock amid revenue concerns

Published 07/07/2025, 13:46
Truist Securities maintains Hold rating on Hims and Hers stock amid revenue concerns

Investing.com - Truist Securities has reiterated its Hold rating and $45.00 price target on Hims and Hers (NYSE:HIMS) following an analysis of June 2025 card data conducted with its Data Science Team. According to InvestingPro data, HIMS has demonstrated remarkable growth with an 86% year-over-year revenue increase and maintains a healthy gross profit margin of 77%.

The analysis suggests HIMS’ second-quarter 2025 revenues will likely fall between $543-$550 million, placing them in the upper half of the company’s guidance range of $530-$550 million but potentially slightly below the consensus estimate of $550 million.

Truist’s card data indicates a 7% sequential decline in HIMS’ revenues for Q2 2025, with GLP-1 related revenues trending slightly lower than estimated while non-GLP-1 revenues appeared largely in line with expectations.

The research firm expressed caution about HIMS’ ability to meet its full-year 2025 revenue guidance, noting that unless the company exits Q2 at a significantly higher run-rate or sees material revenue contributions from recent or upcoming acquisitions, the second-half ramp needed to meet annual targets "are likely to be a stretch."

Truist’s analysis also included data on privately-held Roman Health Ventures, though specific findings regarding this company were not detailed in the report.

In other recent news, Novo Nordisk (NYSE:NVO) announced the continuation of its collaboration with LifeMD to provide patients access to the weight-loss drug Wegovy through NovoCare Pharmacy. The Danish pharmaceutical company also ended its partnership with Hims & Hers Health, citing concerns over deceptive promotion practices. This development prompted Needham to downgrade Hims & Hers from Buy to Hold, removing it from its Conviction List. Meanwhile, Hims & Hers appointed Dheerja Kaur as its first Chief Product Officer, as the company aims to expand globally and enhance its offerings with artificial intelligence.

Additionally, Hims & Hers announced its acquisition of ZAVA, a European telemedicine platform, which is expected to close in the second half of 2025. Needham analysts raised the stock price target for Hims & Hers following this acquisition, citing its potential to expand the company’s presence in Europe. Despite these positive developments, Morgan Stanley (NYSE:MS) maintained an Equalweight rating for Hims & Hers, noting a slowdown in app download growth. The Hers platform saw a 51% increase in downloads, while Hims experienced a 13% decline, indicating a shift in consumer engagement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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