Hims & Hers Health, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Allen Lutz from Bank of America Securities maintained a Sell rating on the stock and has a $28.00 price target.
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Allen Lutz has given his Sell rating due to a combination of factors impacting Hims & Hers Health’s performance. The company is facing challenges in meeting third-quarter sales expectations, with early September trends indicating a potential miss compared to previous estimates. This is compounded by weakening order growth, which has seen a significant decline in September, raising concerns about the company’s performance in the upcoming quarters.
Additionally, customer acquisition costs are under pressure due to increased competition and changes in the direct-to-consumer advertising landscape. The re-entry of competitors into the market and recent FDA reforms could further strain Hims & Hers Health’s margins. Despite being well-positioned against peers, these factors may necessitate a reduction in advertising spend or lead to margin pressure, contributing to the cautious outlook and Sell rating.
In another report released on September 16, Citi also maintained a Sell rating on the stock with a $30.00 price target.
Based on the recent corporate insider activity of 231 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.