Craig Hettenbach, an analyst from Morgan Stanley, maintained the Hold rating on Hims & Hers Health (HIMS – Research Report). The associated price target remains the same with $60.00.
Craig Hettenbach has given his Hold rating due to a combination of factors related to the evolving landscape of the weight loss market and Hims & Hers Health’s strategic positioning within it. The company’s ambitious revenue target of at least $725 million in weight loss by 2025 is seen as aggressive, especially in light of the uncertainties surrounding the sustainability of compounded GLP-1s and the expected year-over-year growth rate of approximately 150% in this segment.
Additionally, while Hims & Hers Health has consistently exceeded expectations in the past, the current market dynamics, including the recent developments by competitors like Lilly and Novo Nordisk, introduce new challenges. These competitors have launched direct-to-consumer pharmacy platforms, which could impact Hims & Hers Health’s market share and growth trajectory. As such, while there is potential for growth, the risks and uncertainties lead to a more cautious outlook, justifying the Hold rating.
In another report released on March 5, Leerink Partners also reiterated a Hold rating on the stock with a $40.00 price target.
Based on the recent corporate insider activity of 240 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HIMS in relation to earlier this year.
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