Analyst Daniel Grosslight of Citi reiterated a Sell rating on Hims & Hers Health, retaining the price target of $30.00.
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Daniel Grosslight has given his Sell rating due to a combination of factors impacting Hims & Hers Health’s financial outlook. Despite the company exceeding third-quarter expectations with a notable increase in online revenue per subscriber, the growth in subscriber numbers was slower than anticipated. Additionally, while the revenue exceeded guidance, the gross margin experienced a decline due to changes in shipping cadence.
Looking ahead, the company’s guidance for the fourth quarter appears lackluster, with expected revenue and adjusted EBITDA falling below consensus estimates. Management has highlighted several headwinds, including changes in shipping practices, shifts in product demand, and significant investments in new specialties and international expansion. These factors are expected to pause margin expansion until the second half of 2026, contributing to the Sell rating as the company navigates these challenges.
In another report released today, Bank of America Securities also maintained a Sell rating on the stock with a $32.00 price target.