HIMS Stock Forecast & Price Target

Hims & Hers Health Inc. demonstrated impressive growth in its most recent quarter, with total revenue increasing by 95.1% year-over-year, largely driven by a 98.3% increase in online revenue to $470.8 million. The company expanded its subscriber base significantly, adding 182,000 new subscribers to reach 2.2 million, reflecting a 45% year-over-year growth and showcasing strong demand for its telehealth services. Additionally, management anticipates that the weight loss segment will contribute approximately 30% of revenue in fiscal year 2025, a substantial increase from 15% in fiscal year 2024, indicating a robust strategy for future growth and enhanced profitability.

Hims & Hers Health faces significant challenges due to increasing competition from venture-backed companies that can leverage their financial resources to undercut prices, which may lead to a loss of market share and compressed profit margins. Furthermore, the company's operating margins have already experienced a decline, reported at 8.9% compared to an expected 10.6%, primarily driven by lower pricing and increased costs related to marketing and product mix. Lastly, with shares trading at over 4x EV/Sales and maintaining high valuations amidst these margin pressures, the overall financial outlook appears precarious.