HIMS: Expanding Women's Health Services Will Drive Broader Market Reach

The average analyst price target for Hims & Hers Health has been modestly lowered by approximately $0.75 to $46.67 per share, as analysts trim revenue growth expectations. They also point to intensifying competition and pressure on pricing in the GLP-1 market.

Analyst Commentary

Analysts have recently issued a range of notes on Hims & Hers Health, reflecting both optimism about the company's potential and caution regarding evolving risks and market dynamics. Their perspectives highlight key factors influencing the company's outlook, valuation, and execution in the coming quarters.

• Analysts point out that Hims & Hers continues to deliver solid growth trends, even in the face of market headwinds and increased competition. This underpins ongoing positive sentiment toward the business's long-term prospects.
• The official launch of menopause and perimenopause services is seen as expanding the company's addressable market, diversifying revenue streams, and supporting future growth beyond the core men's segment.
• Some analysts view Hims & Hers as a disruptive, direct-to-consumer healthcare business with potential for international expansion and new treatment areas. These factors could fuel further growth initiatives.

• Recent price reductions for GLP-1 medications from major pharmaceutical manufacturers are believed to erode Hims & Hers' pricing advantage, especially as these drugs become available directly to consumers through new channels.
• Analysts remain cautious about the impact of regulatory changes to direct-to-consumer drug advertising. Such changes could make customer acquisition more challenging and contribute to ongoing market volatility.
• Some caution that momentum in key business metrics, such as app downloads, has slowed. Particular weakness in the Hims segment raises questions about the pace of core business growth.
• Anticipated reductions in compounded GLP-1 pricing and expectations for more muted margin expansion may limit upside to near-term and long-term valuation.

What's in the News

• The FDA Commissioner publicly stated that Hims & Hers' Super Bowl advertisement violated federal drug promotion rules by omitting disclosure of weight-loss drug side effects. The agency sent cease-and-desist letters to the company and other online pharmacies. (FDA, New York Times)
• The FTC has been investigating Hims & Hers for over a year regarding complaints about difficult subscription cancellation practices. No formal accusations have been made. The company says it is cooperating voluntarily. (Bloomberg)
• The FDA issued a warning letter to Hims & Hers Health, citing false or misleading claims on its website regarding compounded semaglutide products and required prompt corrective action to avoid further legal consequences. (FDA)
• Hims & Hers expanded its women's health offerings with new menopause and perimenopause treatment plans, aiming to reach more women and address gaps in care access. (Company Announcement)
• The company launched a new category in men's health, including access to innovative testosterone treatments through collaborations. There are plans to introduce additional options like oral and injectable therapies in 2026. (Company Announcement)

Valuation Changes

• Consensus Analyst Price Target has decreased slightly from $47.42 to $46.67 per share, reflecting tempered optimism regarding future performance.
• Discount Rate has risen modestly from 6.78% to 6.96%, indicating a marginally higher perceived risk in the company’s future cash flows.
• Revenue Growth expectations have been lowered from 18.77% to 17.12%, illustrating softer projected top-line expansion.
• Net Profit Margin is expected to improve from 8.06% to 8.59%, suggesting analysts anticipate stronger future profitability margins.
• Future P/E multiple has fallen from 53.11x to 48.11x. This points to a more conservative view of the company’s valuation relative to expected earnings.