Hims & Hers weak app downloads debated against new products, says Morgan Stanley

Morgan Stanley reports that third party data reveals a 22% year-over-year decline for Hims & Hers app downloads in the month of August, giving the company a four-month streak of negative growth and a decline for the sixth time in seven months. A key debate for the stock is slowing growth in the core offering and durability of growth in weight loss relative to contributions from new product introductions, such as the new testosterone offering, says the analyst. These dynamics are likely to keep Hims volatile, adds the analyst, who has an Equal Weight rating and $40 price target on the shares.