Hims & Hers initiated with a Buy at Needham

Needham initiated coverage of Hims & Hers with a Buy rating and $24 price target. Hims is a “leading brand” dedicated to accessible and affordable healthcare solutions for sexual health, dermatology, mental health and weight loss through its digital platform and while the stock has seen an increased level of volatility in association with its launch into the compounded GLP-1 space, the firm believes “this will have a more positive than negative impact” on the company’s fundamental profile. Hims is “not just a GLP-1 story” as even without contribution from GLP-1, it is growing 40%-plus at over $1B in revenue and boasts multiple levers for growth and margin expansion, the analyst tells investors.