Hims & Hers price target raised to $13 from $11 at Piper Sandler

Piper Sandler analyst Korinne Wolfmeyer raised the firm’s price target on Hims & Hers to $13 from $11 and keeps a Neutral rating on the shares. The Hims & Hers model is proving effective, with Q1 delivering impressive subscriber growth and more efficient spending helping adjusted EBITDA percentage reach the double digits, the firm says. Nonetheless, Piper argues that if this top line momentum doesn’t hold, the margin progression is at risk. The firm says it doesn’t yet have enough color on new category performance, and still struggles to have confidence in subscriber retention and longer term customer conversion in these new and larger TAMs.