Leerink Partners Reiterates Market Perform Rating on Hims and Hers (HIMS)

Leerink Partners analyst Michael Cherny reiterated a Market Perform rating and $40.00 price target on Hims and Hers (NYSE: HIMS).

The analyst comments "Bottom Line: HIMS’ 1Q results certainly left something for both sides of the ongoing bull/bear debate. The company was expected to beat revenues and certainly did, fairly handily. The EBITDA dropdown, in our view, was even more impressive, given the company’s ongoing marketing efforts as it builds its weight management brand. Gross margins came in as expected, driving leverage more from OpEx. That being said, the 2Q guidance will create some confusion/concerns on the profitability ramp given revenue is below Leerink/consensus estimates, with EBITDA just in line. We need to hear more about this, as well as the full-year guide update (revenue unchanged, EBITDA up less than the 1Q beat) before understanding the full stock impact. Obviously that will also include a significant level of qualitative updates tied to the GLP-1 roll-out and new partnership with Novo Nordisk (NVO; Not Rated) on semaglutide. Finally, the 2030 targets clearly show company confidence in both ongoing growth and profitability, with 22.5% revenue CAGR and ~33% EBITDA CAGR vs. the FY25 midpoint, but obviously this is an evolving business model. Buckle up – this should be an interesting call."

For an analyst ratings summary and ratings history on Hims and Hers click here. For more ratings news on Hims and Hers click here.

Shares of Hims and Hers closed at $41.88 yesterday.

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