Hims and Hers (HIMS) PT Raised at Piper Sandler; 'Another Beat, but Show-Me Story Builds'

Piper Sandler analyst Korinne Wolfmeyer raised the price target on Hims and Hers (NYSE: HIMS) to $39.00 (from $35.00) while maintaining a Neutral rating.

The analyst commented: "Another Beat, but Show-Me Story Builds; Today's after-hours share reaction signals that investors need more certainty to be comfortable here, even when the Q1 report looks solid. Specifically, management reiterated their full year sales outlook, but this is despite delivering a nice Q1 beat and the new Wegovy partnership. Management also laid out an ambitious longer term plan, creating a challenging show-me story for themselves. That said, margins are expanding nicely, and this is still a name delivering stronger financial performance than others in our space. As such, we feel comfortable taking our PT to $39 from $35, but we remain on the sidelines.

We believe it's the lack of upside in the sales guidance that's putting pressure on shares after hours. While the beat was nice and long term outlook looks intriguing, we also believe management is creating a show-me-story type scenario for themselves, and mixed with the discrepancies around near term weight loss expectations, the investment case remains difficult to support. That said, this is still a name that's growing DD+ and expanding margins, which is rare with the current macro state."

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