Bank of America Securities analyst Allen Lutz maintained a Sell rating on Hims & Hers Health yesterday and set a price target of $32.00.
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Allen Lutz has given his Sell rating due to a combination of factors. The acquisition of YourBio Health by Hims & Hers Health highlights the company’s strategic focus on expanding its at-home lab testing capabilities. However, there are concerns about the practical application of YourBio’s TAP device, which collects a smaller blood sample compared to what is typically required for comprehensive lab tests. This raises questions about the effectiveness and scope of the at-home testing service that Hims aims to offer.
Moreover, the near-term market trends for Hims & Hers Health appear challenging, with a noted decline in orders year-over-year in the second half of the year through October. This decline in demand, coupled with the uncertainty surrounding the integration and utility of the newly acquired technology, contributes to the cautious outlook. As a result, Lutz maintains an Underperform rating, with a price objective lower than the current trading price, reflecting a conservative stance on the stock’s future performance.