Analyst Daniel Grosslight from Citi maintained a Sell rating on Hims & Hers Health and keeping the price target at $30.00.
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Daniel Grosslight has given his Sell rating due to a combination of factors. Despite the strategic expansion into hormone replacement therapy (HRT) for menopause and perimenopause, the anticipated market size is relatively small compared to Hims & Hers Health’s other offerings. The revenue projections for this new segment, while positive, are not expected to match the scale of their GLP-1 offering, which is a significant revenue driver for the company.
Additionally, while the gross margins for the HRT offering are expected to be higher, the heavy marketing investments required are likely to result in only breakeven profitability in the near term. The expected share price return is projected to decline by 44.5%, indicating a high-risk investment. These factors collectively contribute to the Sell rating, as the potential upside does not sufficiently outweigh the associated risks.
In another report released yesterday, Bank of America Securities also maintained a Sell rating on the stock with a $28.00 price target.
HIMS’s price has also changed dramatically for the past six months – from $29.460 to $62.760, which is a 113.03% increase.