Needham analyst Ryan MacDonald has reiterated their neutral stance on HIMS stock, giving a Hold rating on July 29.
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Ryan MacDonald has given his Hold rating due to a combination of factors related to Hims & Hers Health’s recent performance and strategic direction. The company’s second-quarter results showed an adjusted EBITDA that surpassed expectations, but revenue figures only met the midpoint of guidance and did not reach consensus forecasts. This indicates a mixed financial performance that contributes to the Hold rating.
Additionally, Hims & Hers Health is in a period of transition, moving away from its 503B GLP-1 revenue stream and focusing on new areas such as daily sexual health and hormonal health, alongside plans to expand into Canada by 2026. While these initiatives present growth opportunities, the company’s immediate stock performance is still heavily influenced by the weight loss sector, which remains uncertain. As a result, investors may be waiting for a clear catalyst to drive renewed growth, justifying the Hold rating.
In another report released on July 29, TD Cowen also maintained a Hold rating on the stock with a $43.00 price target.