Canaccord starts Hims & Hers with Buy on long-term opportunity

Canaccord initiated coverage of Hims & Hers with a Buy rating and $20 price target. The company has continued to see “rapid growth,” reflecting a “consistent and methodical approach” to expanding its portfolio of addressable conditions and treatments, with the strategy underpinned by heightened investments in verticalized operations to support personalized products and more efficient fulfillment, the analyst tells investors in a research note. Despite the stock’s recent rally, the firm sees a “healthy long-term opportunity,” supported by a recurring and rapidly growing online subscription revenue stream, expanding margins, and positive free cash flow.