Analyst Allen Lutz of Bank of America Securities maintained a Sell rating on Hims & Hers Health (HIMS – Research Report), retaining the price target of $21.00.
Allen Lutz’s rating is based on a combination of factors, primarily focusing on Hims & Hers Health’s recent financial performance and future growth projections. The company reported a mixed fourth quarter, with revenue slightly surpassing expectations but showing slower membership growth and weaker than anticipated EBITDA. This performance has raised concerns about the company’s ability to maintain its growth trajectory, particularly given the elevated expectations from investors.
Additionally, while the company’s 2025 guidance appears optimistic with significant revenue contributions expected from weight loss initiatives, there are doubts about the sustainability of its core growth rate without these new ventures. The deceleration of core growth to 31% in January further casts doubt on the achievability of future targets. These factors, combined with limited operating leverage, have led Allen Lutz to maintain a Sell rating, suggesting that the stock may underperform relative to market expectations.
In another report released on February 21, Citi also maintained a Sell rating on the stock with a $25.00 price target.
Based on the recent corporate insider activity of 250 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.