‘Time to Choose Sides on HIMS Stock’ as Analysts Assign Mixed Ratings

Hims & Hers Health (HIMS) has received mixed ratings from Top Wall Street analysts, with Morgan Stanley (MS) maintaining a Hold rating while Citi (C) reiterates a Sell rating. The company’s strong app growth and steady revenue expansion contrast with pricing issues and tough competition, leading to divided opinions on its prospects.

HIMS is a direct-to-consumer telehealth company that offers treatments for hair loss, mental health, and weight management through its digital platform.

Morgan Stanley Analyst Highlights Growth

Morgan Stanley analyst Craig Hettenbach kept a Hold rating with a $40 price target, citing steady app downloads and sales growth. He highlighted that app downloads surged 25% year-over-year in April, and cumulative downloads hit 5.2 million, which shows continued user adoption.

However, according to Second Measure, observed sales data suggest 67% QTD year-over-year growth in Q2, slightly below the 71% guidance midpoint, with weekly growth dipping to its lowest level since last November. The analyst noted HIMS is expanding, but fluctuations in app downloads and sales could pose short-term hurdles.

Citi Cites Pricing Pressures for HIMS Stock

Citi analyst Daniel Grosslight maintained a Sell rating with a $30 price target, pointing to pricing challenges in the weight-loss drug market. The analyst noted that NovoCare, Ro, and LifeMD have adjusted their pricing.

Thus, he raised concerns that Hims may lose customers to rivals offering more affordable options, making it harder to sustain growth at current pricing levels.

Is HIMS Stock a Good Buy?

Turning to Wall Street, HIMS stock has a Hold consensus rating based on four Buys, eight Holds, and two Sells assigned in the last three months. At $45.50, the average Hims & Hers stock price target implies a 14.99% upside potential.

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