Analyst Daniel Grosslight from Citi maintained a Sell rating on Hims & Hers Health and keeping the price target at $30.00.
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Daniel Grosslight has given his Sell rating due to a combination of factors influencing Hims & Hers Health’s financial outlook. Despite the strategic launch of their testosterone replacement therapy (TRT) offering, which aligns with their core focus on men’s sexual health, the anticipated revenue from this new product line is expected to be modest compared to their existing offerings. The company projects a revenue run-rate of $100 million by early 2026, which is significantly lower than the $800 million expected from their GLP-1 offering this year.
Additionally, while the gross margins for the TRT products are estimated to be higher than those of their compounded GLP-1s, the high marketing expenses associated with the launch may delay profitability. The limited availability of the TRT offering in certain states due to lab and pharmacy constraints further complicates the growth potential. These factors contribute to the expectation of a negative share price return of 37.2%, prompting the Sell recommendation.
Grosslight covers the Healthcare sector, focusing on stocks such as Cardinal Health, Phreesia, and Agilon Health. According to TipRanks, Grosslight has an average return of 5.5% and a 47.24% success rate on recommended stocks.
In another report released on September 4, Bank of America Securities also maintained a Sell rating on the stock with a $28.00 price target.