In a report released today, Allen Lutz from Bank of America Securities reiterated a Sell rating on Hims & Hers Health (HIMS – Research Report), with a price target of $22.00.
Allen Lutz has given his Sell rating due to a combination of factors impacting Hims & Hers Health. The observed sales growth in March showed a significant deceleration, reversing a previous trend of accelerating growth. This slowdown, particularly in GLP-1 sales, raises concerns about the company’s ability to maintain its growth trajectory. Additionally, the average transaction value decreased for the first time in several months, which could indicate potential challenges in sustaining revenue growth.
Moreover, the company’s reliance on personalized GLP-1 sales poses legal and regulatory risks, as potential actions from Novo Nordisk and the FDA could impact future sales. The uncertainty surrounding these sales, combined with a more challenging consumer environment, suggests that Hims & Hers Health may struggle to continue raising its guidance as it has in the past. These factors, along with the company’s ambitious revenue targets, contribute to the Sell rating and a price objective of $22, which is significantly below the current trading price.
In another report released on April 1, Citi also maintained a Sell rating on the stock with a $27.00 price target.
Based on the recent corporate insider activity of 240 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HIMS in relation to earlier this year.