Dollar edges higher ahead of Fed minutes; sterling gains after CPI increase
On Thursday, TD Cowen maintained a positive outlook on Hims & Hers Health, Inc. (NYSE:HIMS) shares, raising the company's price target from $15.00 to $25.00 while keeping a Buy rating on the stock. This adjustment reflects the firm's assessment of the company's prospects in the context of the broader compounding pharmacy market.
The firm recently hosted a discussion with an industry expert on compounding pharmacies, which shed light on the potential risks and rewards within the sector. The compounding pharmacy market is currently less stringently regulated by the FDA compared to larger pharmaceutical companies, particularly regarding the oversight of 503(b) facilities and the sourcing of active ingredients.
Despite these potential risks, TD Cowen recognizes that compounding pharmacies, when managed effectively, play an indispensable role in supplying GLP-1s, which are significant in the current market. The analyst's statement underscored this point, noting, "We believe HIMS will likely see upside..."
Hims & Hers Health, Inc. operates within this niche, and the raised price target suggests confidence in the company's ability to navigate the market dynamics and capitalize on the opportunities presented by the compounding pharmacy sector.
Investors and market watchers will likely keep a close eye on HIMS shares following this updated guidance from TD Cowen. The new price target of $25.00 represents a substantial increase from the previous target, indicating a strong belief in the company's growth trajectory and market position.
In other recent news, multiple financial firms have updated their outlook on Hims & Hers Health, Inc., focusing on the company's expansion into GLP-1 treatment for weight loss.
BofA Securities raised its price target for the company twice, first to $22.00 and then to $26.00, while maintaining a Buy rating, based on the potential of the GLP-1 product and the company's online revenue growth. Canaccord Genuity also increased its price target for Hims & Hers to $24.00, citing the company's new addition to its weight loss treatment options.
However, Citi revised its stance on Hims & Hers, downgrading the company from Buy to Neutral, despite raising the price target to $20.00. They cited potential regulatory and legal risks associated with the GLP-1 launch.
Similarly, Truist Securities maintained a Hold rating on Hims & Hers shares, with a steady price target of $13.00, following the company's announcement regarding the expansion of its weight loss program.
These recent developments indicate that while there is optimism about Hims & Hers' growth potential, there are also concerns about the risks associated with the new GLP-1 product.
The various financial firms' analyses suggest that the company's future performance will depend on the success of its weight loss program expansion and the management of potential regulatory risks.
InvestingPro Insights
With the positive outlook from TD Cowen on Hims & Hers Health, Inc. (NYSE:HIMS) in mind, current data and insights from InvestingPro further bolster the company's potential. The market cap of HIMS stands at a robust $4.34 billion, reflecting significant investor confidence. Impressively, the company has witnessed a 55.65% revenue growth over the last twelve months as of Q1 2024, indicating a strong upward trajectory in its financial performance. Moreover, HIMS has achieved a substantial gross profit margin of 82.41% during the same period, showcasing efficient operations and a healthy financial buffer.
InvestingPro Tips highlight that analysts have recently revised their earnings upwards for the upcoming period, suggesting that the company's financial outlook is improving. Additionally, HIMS has demonstrated a strong return over the last year, with a 133.91% price total return, which is particularly noteworthy for investors seeking growth opportunities. For those interested in further insights, there are additional InvestingPro Tips available that can shed more light on the company's financial health and market position. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription to access these valuable tips and enhance your investment strategy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.