On Thursday, Truist Securities revised its price target for Hims and Hers (NYSE:HIMS), increasing it to $23.00 from the previous $13.00, while retaining a Hold rating on the stock. The adjustment follows the anticipation of a strong second quarter performance for the company, with expectations of a significant guide raise influencing the stock's movement.
The company is expected to surpass revenue estimates by approximately $15 million for the second quarter of 2024, with its adjusted EBITDA forecast to meet projections. Truist Securities anticipates Hims and Hers to enhance its revenue guidance by $60-$80 million and to adjust the lower end of its EBITDA outlook for the year.
The firm noted that the company's ability to consistently outperform and raise its financial outlook in the near term could attract further investor interest and sustain the stock's positive trajectory. The analyst from Truist Securities highlighted the potential for Hims and Hers to maintain momentum with consecutive quarters of beating and raising expectations.
Despite the optimistic short-term outlook, the firm's medium-term stance on Hims and Hers remains cautious. The unchanged Hold rating over the next 12 to 18 months is attributed to uncertainties surrounding the long-term market dynamics of compounded GLP-1s, particularly once the current branded supply shortage is resolved. This factor contributes to the analyst's decision to maintain a Hold rating despite the improved price target.
In other recent news, Hims & Hers Health, Inc. has seen a series of adjustments in stock targets by various financial firms. Piper Sandler increased its price target to $18, maintaining a neutral stance due to potential risks associated with the company's involvement with GLP-1 drugs. TD Cowen, displaying optimism on the company's growth within the compounding pharmacy market, raised its target from $15 to $25.
BofA Securities, after analyzing online revenue growth data, raised its target twice, first to $22 and then to $26, citing the potential of the company's GLP-1 product for weight loss. Canaccord Genuity also revised its price target for the company to $24, following the announcement of a new addition to its weight loss treatment options.
However, Citi revised its stance on Hims & Hers, downgrading the company from Buy to Neutral, despite raising the price target to $20, due to potential regulatory risks associated with the GLP-1 launch.
These recent developments underscore the importance of the company's expansion into GLP-1 treatment for weight loss and its impact on the company's stock targets. The various financial firms' analyses suggest that the company's future performance will depend on the success of its weight loss program expansion and the management of potential regulatory risks.
InvestingPro Insights
Following the revised price target from Truist Securities for Hims and Hers (NYSE:HIMS), a glimpse into real-time metrics from InvestingPro reveals a company with a strong performance and positive outlook. With a market capitalization of $4.72 billion and a remarkable revenue growth of 55.65% in the last twelve months as of Q1 2024, Hims and Hers stands out in its sector. The company's gross profit margin remains high at 82.41%, reflecting efficient operations and a strong market position.
InvestingPro Tips highlight that analysts have recently revised their earnings upwards for the upcoming period, indicating confidence in the company's future performance. Additionally, the company's strong return over the last three months, with a price total return of 78.2%, aligns with the positive sentiment expressed by Truist Securities. It's also noteworthy that analysts predict the company will be profitable this year, which could further solidify investor interest.
For readers looking to delve deeper into Hims and Hers' financials and performance metrics, InvestingPro offers additional insights. There are 9 more InvestingPro Tips available that can provide a comprehensive analysis of the company's prospects. Interested investors can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, enabling them to make informed investment decisions.
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