While most of Wall Street remains cautious on Hims & Hers Health (HIMS), TipRanks’ A.I. Stock Analysis tool continues to show confidence in the telehealth company’s growth potential. According to TipRanks A.I., HIMS has a price target of $53, significantly higher than the Wall Street average of $39.80. While traditional analysts see more than 17% downside, the A.I. analyst projects over 10% upside from current levels.
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For context, TipRanks’ A.I. Stock Analysis delivers automated, data-driven evaluations of stocks based on key performance metrics, giving investors a clear and concise snapshot of a stock’s potential. Notably, HIMS earns a strong score of 73 out of 100 on the tool.
AI Analyst Spotlights Strong Financials
Hims & Hers Health’s A.I. score points to strong financials and a positive earnings call, showing solid growth and a clear strategy. Overall, the A.I. tool has looked beyond recent short-term volatility. With a growing customer base, expanding product offerings, and strong long-term growth potential, the current dip could present a strategic buying opportunity for investors focused on the bigger picture.
The tool also highlights both the positive and negative factors influencing the company’s stock performance. Below is the screenshot for reference.
One key positive is that FY25 targets appear achievable even without contributions from Novo Nordisk’s (NVO) partnership. With multiple growth catalysts still active, the company is well-positioned to expand its core operations. From a valuation standpoint, the current price offers an attractive entry point, especially after a 15% decline in the last month.
On the flip side, the termination of the partnership with Novo has raised serious legal concerns for Hims & Hers.
Wall Street Remains Cautious on HIMS Stock
Following the fallout between Hims and Novo, Wall Street analysts have turned cautious on the stock’s potential. In particular, Needham’s four-star-rated analyst Ryan MacDonald downgraded HIMS stock to Hold from Buy and removed the $65 price target. Needham also removed HIMS stock from its Conviction List. MacDonald noted that HIMS now faces a competitive disadvantage, as both Eli Lilly (LLY) and Novo continue to support rival platforms through active partnerships.
Additionally, several analysts reiterated their Hold ratings on HIMS stock following the partnership breakup, citing increased legal risks.
Is HIMS Stock a Good Buy?
Overall, Wall Street analysts have a Hold consensus rating on HIMS stock based on one Buy, eight Holds, and two Sells assigned in the last three months. The average HIMS stock price target of $39.80 implies a downside of 17% from the current trading level.
