In a report released today, Jonna Kim from TD Cowen downgraded Hims & Hers Health (HIMS – Research Report) to a Hold, with a price target of $30.00.
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Jonna Kim has given his Hold rating due to a combination of factors impacting Hims & Hers Health’s stock outlook. The primary reason for this rating is the lack of near-term catalysts that could drive significant upside, despite the company’s long-term commitment to accessible healthcare. While a strong performance is anticipated in the first quarter of 2025 due to high demand for compounded GLP-1s, the outlook for the remainder of the fiscal years 2025 and 2026 appears challenging due to tough comparisons and potential economic headwinds.
Kim also expresses concerns regarding the company’s optimistic weight loss revenue guidance, which could be difficult to achieve if current users do not transition to alternative medications like Liraglutide, especially as compounded GLP-1s are no longer available after May 22. Additionally, the competitive landscape is becoming more intense, and the softer consumer backdrop could impact higher-priced items, given that HIMS operates on a cash pay model. Despite these challenges, the analyst acknowledges the company’s unique position in personalizing healthcare and its potential for long-term growth, but sees limited catalysts for significant beats and raises in the near term.