Analyst Daniel Grosslight from Citi maintained a Sell rating on Hims & Hers Health (HIMS – Research Report) and increased the price target to $30.00 from $25.00.
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Daniel Grosslight has given his Sell rating due to a combination of factors that highlight both opportunities and challenges for Hims & Hers Health. Despite the company’s strong performance in the first quarter, there are concerns about the guidance for the second quarter, which suggests that the latter half of the year will need to drive significant revenue growth. Additionally, the transition from on-demand to daily formulations in sexual health products could slow down growth, and marketing efficiency might decline as the company broadens its marketing strategies.
Another critical factor is the expected reduction in revenue from GLP-1 products in the second quarter, following the cessation of selling commercially available doses. Although the partnership with Novo reduces legal risks, the overall outlook remains uncertain. The company’s guidance implies potential volatility due to factors such as weakening consumer sentiment and possible impacts from pharmaceutical tariffs. Despite these challenges, the partnership with Novo is seen as a positive development, leading to an increased target price, but the stock remains rated as Sell due to the high-risk environment.
Grosslight covers the Healthcare sector, focusing on stocks such as Hims & Hers Health, Teladoc, and Cardinal Health. According to TipRanks, Grosslight has an average return of 8.0% and a 48.63% success rate on recommended stocks.
In another report released yesterday, Bank of America Securities also reiterated a Sell rating on the stock with a $26.00 price target.