Hims & Hers Health’s (HIMS) shares continued to plunge on Thursday despite the consumer telehealth company launching a new “affordable” healthcare platform.
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The California-based company said the new product, called Labs, is designed to make laboratory test results and healthcare information previously reserved for the wealthy “accessible” to its customers. The platform will offer customers — depending on their subscription plans — access to information such as heart health, metabolism, inflammation, and hormones, among other metrics.
According to the telehealth company, lab test results provided through the platform will be easy to understand and will be matched with action plans developed by doctors. The platform will also offer users lifestyle guidance and access to personalized treatment plans recommended by healthcare providers.
Hims & Hers User Activity Down, Subscribers Up
The launch of Labs comes at a time when Hims & Hers is battling falling user engagement on its platform. At the end of October, downloads of its app fell by 21% from a year ago, with web traffic to the platform plunging by 14%.
However, the company’s recently released third-quarter results showed that its subscriber count hit 2.5 million, a 21% increase from a year ago. Its revenue also rose by almost 50% to reach almost $600 million.
Yet, analysts continue to debate whether the company is a one-hit GLP-1 wonder. GLP-1 is a hormone that plays a key role in obesity medications by regulating appetite and blood sugar.
This is even as Hims & Hers has unfolded plans to introduce new GLP-1 “microdosing treatments” to rival much more expensive branded obesity drugs such as Novo Nordisk’s (NVO) Wegovy and Eli Lilly’s (LLY) Zepbound.
Moreover, the telehealth company is in talks with Novo Nordisk to offer Wegovy on its platform.
Is HIMS a Good Stock to Buy?
Turning to Wall Street, Hims & Hers’ shares currently have a Hold rating consensus from analysts. This is based on two Buys, six Holds, and two Sells assigned by 10 analysts over the past three months.
However, the average HIMS price target of $48.57 implies almost 34% growth potential from the current trading level. Over the last three months, Hims & Hers’ shares have plunged over 39%, pushing the company’s current-year-to-date stock gain to about 50%.
