Truist Securities Reiterates Hold Rating on Hims and Hers (HIMS)

Truist Securities analyst Jailendra Singh reiterated a Hold rating and $37.00 price target on Hims and Hers (NYSE: HIMS).

The analyst commented: "3Q25 Ahead As We Expected, but 4Q Guidance Mixed; Bottom Line. HIMS posted 3Q25 results slightly ahead of our expectations ($19 mln beat vs our expectations of $10 mln beat) and narrowed its 2025 revenue guidance (lowered by $5 mln at the midpoint). The 4Q25 outlook on both revenue and adjusted EBITDA came in below consensus, which means our concerns around 2026 revenue and EBITDA growth continue to persist. 2025 guidance reflects $20-$25 mln revenue headwind in Q4 from migrating sterile weight-loss fulfillment to 503A facilities and shorter shipping cadences, which reduce revenue recognized per shipment. In our callback, HIMS noted that this headwind is not an incrementally new development but rather, quantifying the company's improved visibility on what the actual headwind will be. In our view, the company's recent pricing cut on compounded GLP-1s and elimination of 12-month subscriptions is likely also contributing to this headwind. Notably, HIMS is no longer disclosing specific figures or metrics around the GLP-1 business. Meanwhile, core business remains mixed as HIMS expects continued moderation in on-demand sexual health business to persist in the near term. Deferred revenues increased by $20 mln sequentially to $118.5 mln at the end of Q3. We estimate most of this deferred revenue is related to GLP-1 business and majority of this will be recognized in 4Q. Separately, along with its release, HIMS highlighted being in active discussions (still ongoing) with Novo Nordisk (NVO, NR) to make Wegovy injections and Novo Nordisk’s oral Wegovy (when FDA approved) available through the Hims & Hers platform. Given some investor concerns around a potential Novo lawsuit risk, we believe the majority of positive share price reaction in after-market is driven by the Novo-related commentary. Reiterate Hold."

For an analyst ratings summary and ratings history on Hims and Hers click here. For more ratings news on Hims and Hers click here.

Shares of Hims and Hers closed at $44.39 yesterday.

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