Hims expands EU reach with Zava deal as U.S. growth slows, says BofA

After Hims & Hers announced that it will acquire Zava, a European telehealth platform and online pharmacy with more than 1.3M active customers, BofA said the acquisition will expand HIMS footprint in the United Kingdom, France, Ireland and Germany and notes that the company expects the deal to be accretive by 2026. On the positive side, the acquisition will expand Hims’ direct to consumer model to major European countries, but the firm contends that expanding internationally while the U.S. business slows is a risk and may reflect product saturation and rising competition in the U.S. markets. The firm maintains an Underperform rating and $28 price target on the shares.