Needham on Hims and Hers (HIMS): 'we believe this incremental near-term investment and likely growing pains'
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Needham analyst Ryan MacDonald reiterated a Hold rating on Hims and Hers (NYSE: HIMS).
The analyst comments "We are reiterating our Hold rating on Hims & Hers Health (HIMS) following the company's earnings print in which a 3Q beat was offset by a below consensus 4Q guide. With parts of the core business seemingly in a state of transition, HIMS laid out its roadmap for expansion as management intends to invest to build out new categories including low testosterone (3Q25 launch), menopause (4Q25 launch), whole body lab testing (launch before YE), and longevity (FY26 launch), as well as new geos including Spain and Canada, amongst others. While investors will likely view this as key to HIMS' long-term success, we believe this incremental near-term investment and likely growing pains as new initiatives scale, likely create a difficult setup for the stock heading into FY26 as growth decelerates and margin expansion slows."
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Shares of Hims and Hers closed at $44.39 yesterday.