Piper Sandler analyst Korinne Wolfmeyer raised the firm’s price target on Hims & Hers to $21 from $18 and keeps a Neutral rating on the shares. The firm notes the company delivered another solid print, driven by a nice uptake of GLP-1s and the core business. The average price also moved up with GLP-1s, but gross margin percentage fell several points year-over-year due to GLP-1 mix headwinds and value offerings for core subscribers. That said, as the business scales, SG&A leverage is looking more attractive, but Piper is limiting the margin upside it is modeling due to GLP-1 headwinds that are likely to become stronger and investments to support new launches.
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