Allen Lutz, an analyst from Bank of America Securities, maintained the Sell rating on Hims & Hers Health. The associated price target remains the same with $32.00.
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Allen Lutz has given his Sell rating due to a combination of factors, primarily centered around Hims & Hers Health’s recent strategic moves and market expectations. Despite the company’s expansion into preventive care through lab testing in partnership with Quest Diagnostics, which is seen as a positive step towards broadening its market reach, there are concerns about the sustainability of its growth trajectory.
While the lab testing initiative could potentially enhance revenue per member and support subscriber growth, Lutz believes that market expectations for revenue growth in the coming years are overly optimistic. The company’s current stock price exceeds the price objective set by Lutz, indicating a potential overvaluation. These factors contribute to the Sell rating, as the anticipated growth may not align with the current market valuation.
In another report released on November 6, Citi also maintained a Sell rating on the stock with a $30.00 price target.
Based on the recent corporate insider activity of 212 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.