Analyst Allen Lutz of Bank of America Securities maintained a Sell rating on Hims & Hers Health, retaining the price target of $28.00.
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Allen Lutz has given his Sell rating due to a combination of factors impacting Hims & Hers Health. The company’s recent quarterly performance showed a mixed outcome, with revenue falling short of expectations despite exceeding EBITDA forecasts. This shortfall in revenue, particularly in the core business, raises concerns about the company’s growth trajectory.
Additionally, while the acquisition of ZAVA is expected to contribute significantly to revenue in the latter half of the year, the overall revenue guidance was adjusted downward, indicating potential challenges ahead. The company’s guidance for the upcoming quarter suggests EBITDA margins will be below consensus estimates, further supporting the cautious outlook. These elements, combined with a significant gap between the current stock price and the price objective, underpin the Sell rating.