Morgan Stanley analyst Craig Hettenbach maintained a Hold rating on Hims & Hers Health (HIMS – Research Report) today and set a price target of $60.00.
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Craig Hettenbach has given his Hold rating due to a combination of factors that reflect both the potential and challenges facing Hims & Hers Health. The company is making strides in disrupting the healthcare sector by leveraging technology like MedMatch and custom EHR to offer personalized products, which enhances user experience and retention. This technological edge allows Hims to provide tailored treatment solutions that cater to individual health profiles, potentially increasing adherence rates.
Despite these advancements, the stock’s near-term volatility is influenced by the ongoing focus on GLP-1, which may overshadow the core business’s strength. However, there’s potential for significant growth if Hims successfully expands its subscriber base and product categories, such as HRT. Management’s commitment to achieving a 20%+ adjusted EBITDA margin by 2030 and the possibility of growing subscribers to tens of millions are promising, yet these goals come with inherent risks that justify a Hold rating.
In another report released on February 26, Truist Financial also maintained a Hold rating on the stock with a $39.00 price target.
Based on the recent corporate insider activity of 240 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.