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Stock impact report

Hims & Hers slips as Jefferies cuts on valuation [Seeking Alpha]

Hims & Hers Health, Inc. Class A (HIMS) 
Company Research Source: Seeking Alpha
trimmed its price target to $15 from $17 per share, citing a valuation in line with its growth expectations. After recording more than 80% of growth over three consecutive years from 2020 to 2022, HIMS' growth has decelerated to 65% in 2023, argued analyst Glen Santangelo, projecting ~38% growth for the company in 2024. The analyst attributes this growth trajectory to revenues from upfront bookings for multi-month subscriptions, which he says will be less impactful in the future. There is significant room for growth in the markets for stigmatized conditions such as hair loss targeted by Hims & Hers Health ( HIMS ). “However, we believe it will be challenging for the company to find more of these “unicorn” markets that are perfectly suited to the HIMS model," the analyst added. HIMS trading at 25x in terms of 2025 EBITDA appropriately reflects the growth expectations and increasing profitability, Santangelo noted. “Given the higher valuation and more appropriate expectations, w Show less Read more
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