Hims & Hers Health: Balancing Impressive Growth with Emerging Challenges – A Hold Recommendation

Craig Hettenbach, an analyst from Morgan Stanley, reiterated the Hold rating on Hims & Hers Health (HIMS – Research Report). The associated price target remains the same with $40.00.

Craig Hettenbach’s rating is based on a combination of factors that present both opportunities and challenges for Hims & Hers Health. The company has shown impressive growth, with a notable 50% increase in EBITDA for the quarter, which led to an upward revision of its 2025 EBITDA guidance. Additionally, the expansion of its weight loss offerings through a partnership with Novo and the anticipated launch of new categories like hormone treatments are positive indicators for future growth.
However, there are also concerns that justify the Hold rating. The company’s gross margin fell short of expectations for the second consecutive quarter, and for the first time, its guidance for next quarter’s revenue was below market expectations. Furthermore, there is a slowdown in revenue growth for its sexual health segment, which could raise concerns about the sustainability of growth in this category. Despite ambitious long-term targets for 2030, these mixed signals contribute to the cautious Hold recommendation.

According to TipRanks, Hettenbach is a 4-star analyst with an average return of 5.1% and a 54.94% success rate.

In another report released yesterday, Leerink Partners also reiterated a Hold rating on the stock with a $40.00 price target.