HIMS: Menopause Expansion Will Drive Future Upside Despite Weight Loss Pricing Headwinds

Analysts have trimmed their average price target on Hims & Hers Health from approximately $46.00 to about $44.36 per share, reflecting expectations for stronger top line growth but slightly lower long term margins as GLP 1 pricing dynamics, competitive pressures and new service investments temper profitability and valuation multiples.

Analyst Commentary

Bullish analysts highlight that Hims and Hers continues to post solid growth trends despite near term headwinds. This supports the view that the company can sustain premium revenue growth versus broader digital health peers. They see the expanding treatment portfolio and international ramp as key levers to deepen customer relationships and reduce dependence on any single category.

At the same time, several firms view the new menopause and perimenopause offering as a strategic extension of the Hers brand that broadens the addressable market and diversifies revenue away from more competitive male focused segments. While near term financial contributions are expected to be modest, the service is seen as an important building block for 2026 and beyond.

On valuation, some research suggests that fair value estimates in the low to mid 50 dollar range remain achievable if Hims and Hers can execute on category expansion while maintaining disciplined customer acquisition and gradually improving unit economics. However, the path to that outcome is viewed as increasingly sensitive to GLP 1 pricing and competitive intensity in weight loss.

Bullish Takeaways

• Strong quarter over quarter growth trends, even with macro and regulatory headwinds, reinforce the view that Hims and Hers can continue taking share and support above market revenue growth assumptions.
• International expansion and new treatment categories, including menopause, are seen as structural drivers that expand the total addressable market and support a higher long term growth algorithm.
• Some fair value estimates in the low to mid 50 dollar range imply meaningful upside from current levels if management can balance expansion investments with gradual margin improvement into 2026.
• Brand strength and first mover advantages in direct to consumer healthcare are viewed as strategic assets that should help the company navigate tightening advertising rules and rising competition.

Bearish Takeaways

• Lower GLP 1 prices from large manufacturers and emerging platforms like TrumpRx narrow the Hims and Hers pricing advantage, raising concerns about the durability of its compounded GLP 1 economics and future margin profile.
• Bearish analysts argue that even if Hims and Hers remains the lowest price option today, further GLP 1 price cuts and the introduction of orals could pressure subscription pricing, valuation multiples, and long term profitability.
• Regulatory changes to direct to consumer advertising, especially stricter requirements for safety disclosures in social and TV campaigns, are expected to increase customer acquisition friction and marketing costs.
• Ongoing investment in new services and markets, while positive for growth, is seen as a constraint on near term margin expansion. This has led some firms to maintain Sell or Underperform ratings and lower price targets in the high 20s to low 30s.

What's in the News

• Hims and Hers launched Labs, a new diagnostics offering that uses Quest Diagnostics blood testing to deliver doctor developed insights and personalized treatment plans. CEO Andrew Dudum believes this platform can scale into a 1 billion dollar business (Wall Street Journal).
• The company announced an expansion into Canada through the acquisition of weight loss focused digital health platform Livewell, with a dedicated local leadership team and plans to launch a comprehensive GLP 1 based weight management program timed to the first expected availability of generic semaglutide.
• The U.S. FDA issued a warning letter to Hims and Hers over allegedly misleading marketing claims for compounded semaglutide products, citing misbranding violations and demanding corrective action.
• Hims and Hers authorized a new share repurchase program of up to 250 million dollars through November 2028 and has already bought back roughly 1.66 percent of its shares, indicating management confidence and ongoing capital return.
• The company introduced new menopause and perimenopause treatment plans on the Hers platform, adding a major women's health specialty that targets long under served patients and that is expected to expand further next year.

Valuation Changes

• The fair value estimate has decreased modestly from approximately $46.00 to about $44.36 per share, reflecting slightly more conservative long term margin assumptions.
• The discount rate is effectively unchanged, holding steady at roughly 6.96 percent, indicating no material shift in the perceived risk profile.
• Revenue growth has risen from about 15.72 percent to roughly 17.16 percent, signaling higher expectations for top line expansion.
• The net profit margin has declined from approximately 8.90 percent to around 8.01 percent, incorporating the impact of GLP 1 pricing dynamics and incremental investment.
• The future P/E multiple has edged higher from about 45.0x to roughly 46.5x, suggesting slightly richer valuation expectations despite the trimmed fair value per share.