On Tuesday, Jefferies adjusted its outlook on Hims & Hers Health, Inc. (NYSE:HIMS), lowering the stock price target to $14 from the previous $15, while keeping a Hold rating on the stock. This change follows the company's first-quarter results, which have been incorporated into Jefferies' revised financial model.
The new model takes into account the company's significant profitability improvements and over 400 basis points of marketing efficiency observed in the first quarter. Hims & Hers has demonstrated strong growth and increasing profit margins, according to the firm's analysis.
Despite the positive performance metrics, the decision to maintain a Hold rating comes as the market consensus already anticipates revenue growth exceeding 20% and EBITDA growth surpassing 35% for fiscal years 2025 and 2026. The firm's stance suggests that these expectations are already factored into the current valuation of Hims & Hers shares.
Hims & Hers, known for its direct-to-consumer healthcare and wellness products, has been closely watched by investors for its growth trajectory and ability to scale efficiently. The company's latest financial results have provided further insight into its operational progress and future potential.
The updated stock price target of $14 represents Jefferies' current valuation assessment of Hims & Hers based on the firm's analysis of the company's financials and market position. Investors and stakeholders in Hims & Hers will likely monitor how the company's shares respond to this revised target and ongoing market conditions.
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