Update shared on19 Sep 2025
Fair value Decreased 4.12%Hims & Hers Health faces increased regulatory and legal risks, slowing customer growth, and business momentum concerns, prompting analysts to lower their price target from $49.45 to $47.42.
Analyst Commentary
- Increased regulatory headwinds following new FDA reforms for direct-to-consumer advertising, making customer acquisition and marketing more challenging across digital and broadcast platforms.
- Significant legal and litigation risk resulting from Novo Nordisk's termination of its partnership, with heightened likelihood of lawsuits and the company now at a competitive disadvantage versus peers with pharma partnerships.
- App downloads and web traffic have shown year-over-year and sequential decline, raising concerns around the company’s core business momentum and growth strategy.
- Core revenue growth has decelerated sharply, with future growth expected to slow further as it converges toward the average of order and subscriber growth, absent significant new product launches.
- Bullish analysts cite ongoing realization of deferred GLP-1 revenues and maintenance of the compounded semaglutide franchise; however, bearish analysts point to concerns about the sustainability and regulatory risks of these revenue streams.
What's in the News
- The FDA commissioner stated that Hims & Hers' Super Bowl advertisement violated federal law by highlighting weight-loss drug benefits without mentioning side effects, prompting enforcement actions against several companies including online pharmacies (New York Times).
- The FDA is intensifying its stance on drug advertising compliance, having sent approximately 100 cease-and-desist letters and thousands of warning letters to companies over similar violations (New York Times).
- The FTC has been investigating Hims & Hers for over a year regarding potentially difficult subscription cancellation processes but has not formally accused the company of wrongdoing; Hims & Hers is cooperating voluntarily (Bloomberg).
- Hims & Hers has over 2.4 million subscribers who access prescription medications for various conditions, including obesity, hair loss, and erectile dysfunction through its platform (Bloomberg).
- Lawmakers have urged the FDA to address the proliferation of knockoff GLP-1 weight-loss drugs; a Hims & Hers spokesperson supports bipartisan calls for stricter enforcement against counterfeit medications (Bloomberg).
Valuation Changes
Summary of Valuation Changes for Hims & Hers Health
- The Consensus Analyst Price Target has fallen slightly from $49.45 to $47.42.
- The Future P/E for Hims & Hers Health has fallen from 57.60x to 53.11x.
- The Net Profit Margin for Hims & Hers Health has risen slightly from 7.83% to 8.06%.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.