Analyst Jonna Kim of TD Cowen maintained a Buy rating on Hims & Hers Health (HIMS – Research Report), with a price target of $44.00.
Jonna Kim has given his Buy rating due to a combination of factors that highlight both the potential and challenges facing Hims & Hers Health. The company has demonstrated impressive sales growth, particularly in the weight loss segment, with a year-over-year increase of 95%. Despite some near-term volatility expected due to changes in the GLP-1 drug landscape, the long-term growth prospects remain strong, supported by the company’s expansion in personalization and specialties.
Kim also notes that while there are risks associated with the cessation of compounded GLP-1s, the company’s ability to adapt by potentially acquiring more subscribers through successful marketing efforts could drive further growth. The valuation, although currently trading at approximately 3 times the FY2 EV/Sales, reflects confidence in Hims & Hers Health’s future performance. Consequently, the price target has been raised to $44, indicating optimism about the company’s ability to navigate upcoming challenges and capitalize on growth opportunities.
In another report released today, Needham also reiterated a Buy rating on the stock with a $61.00 price target.