Michael Cherny, an analyst from Leerink Partners, maintained the Hold rating on Hims & Hers Health (HIMS – Research Report). The associated price target remains the same with $18.00.
Michael Cherny has given his Hold rating due to a combination of factors including Hims & Hers Health’s consistent performance and revised guidance. The company surpassed revenue and adjusted EBITDA estimates, showing a strong quarter, yet it experienced a slight decline in new customer growth compared to expectations. Hims & Hers Health also managed to increase the average order value (AOV) beyond analyst projections, which indicates a robust monetization of its customer base. However, despite these positive indicators, the growth in customer base was below both Leerink and consensus estimates, suggesting potential concerns about the scalability and future growth pace of the company.
Additionally, while the company has uplifted its guidance for the fiscal year, indicating confidence in its business model and future prospects, there remain operational and non-operational uncertainties that appear to be factored into Cherny’s rating. The gross margin, although slightly decreased from the previous quarter, still exceeds long-term targets, which could imply a strong underlying efficiency in the business model. Yet, the Hold rating reflects a cautious optimism, recognizing the company’s achievements while awaiting further clarity on product performance and customer acquisition trends that could either reinforce or challenge the current trajectory of the company’s growth.
In another report released yesterday, Deutsche Numis also maintained a Hold rating on the stock with a $16.00 price target.
Based on the recent corporate insider activity of 120 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HIMS in relation to earlier this year.
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Hims & Hers Health (HIMS) Company Description:
Oaktree Acquisition Corp. is an emerging growth company, which engages in the provision of merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. The company was founded by Patrick McCaney, Alexander Taubman and Mathew Pendo in 2019 and is headquartered in Los Angeles, CA.
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