Hims & Hers Health (NYSE:HIMS) has taken investors on a wild ride in 2025. The stock surged nearly 200% earlier this year, reaching an all-time high by late February – only to plunge by half in the weeks that followed.
The drop came fast after the FDA announced that the shortage of semaglutide – the active ingredient in popular weight-loss drugs like Ozempic and Wegovy – was officially resolved. That was a major blow for Hims & Hers, which had been filling the gap with compounded versions of the drug during the shortage. But now that the FDA no longer allows those compounds, the company’s ability to stay competitive in the weight loss space is under pressure.
One top investor, known by the pseudonym Geneva Investor, is not worried about this issue – calling these concerns way “overblown.”
“I see HIMS as having reached a state of ‘escape velocity’ with its business model, scaling it up successfully and sustainably,” notes the 5-star investor, who is among the top 4% of TipRanks’ stock pros.
Geneva explains that there are plenty of other revenue options for the company, which has an expected customer retention rate of 85%. HIMS has also projected exceptional revenue growth in the coming year, even after accounting for the hit to its weight loss business.
“This is a company that is expecting 50%+ revenue growth in 2025, while simultaneously indicating it will be able to retain the vast majority of its customer base,” adds the investor.
Surprisingly, HIMS plans to reduce its marketing spend by 1% to 3% of revenue annually – an unusual move for a company in the throes of working to attract additional consumers. Geneva sees this as a sign of operational efficiency rather than retreat. The company is aiming for 10 million customers by 2030, each contributing between $75 to $125 in annual revenue. For context, HIMS ended 2024 with 2.2 million subscribers.
Looking ahead, Geneva is bullish. Very bullish. In a best-case scenario, the investor sees HIMS stock soaring past $350 in five years.
“I see HIMS as an asymmetric investment opportunity, driven by AI potential and healthcare resilience,” Geneva concludes, issuing a Strong Buy rating on the stock. (To watch Geneva Investor’s track record, click here)
Wall Street, on the other hand, does not fully share this bullish sentiment. With 5 Buy, 6 Hold, and 2 Sell ratings, HIMS has a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $45.92 would imply gains just shy of ~44% in the month ahead. (See HIMS stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.