Craig Hettenbach, an analyst from Morgan Stanley, maintained the Hold rating on Hims & Hers Health. The associated price target remains the same with $40.00.
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Craig Hettenbach has given his Hold rating due to a combination of factors impacting Hims & Hers Health’s performance. The company’s app downloads and web traffic have shown a significant decline, with app downloads dropping by 21% year-over-year in October and web traffic decreasing by 14% in the same period. This decline in user engagement suggests potential challenges in maintaining growth momentum.
Additionally, the company’s stock has experienced a pullback, aligning with the price target of $40 set by Morgan Stanley. The slowing growth in the core business, coupled with industry-wide price reductions for GLP-1s, places increased pressure on the success of new product launches. These factors collectively contribute to a cautious outlook, justifying the Hold rating as the company navigates these headwinds.
In another report released yesterday, Truist Financial also maintained a Hold rating on the stock with a $37.00 price target.