Hims and Hers (HIMS) PT Raised to $39 at Barclays, 'Our Proprietary Data Points to Sharp Inflection'
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Barclays analyst Glen Santangelo raised the price target on Hims and Hers (NYSE: HIMS) to $39.00 (from $29.00) while maintaining a Overweight rating.
The analyst comments "Our proprietary data points to a clear inflection post-Novo. Our alternative data has started to show improvement in the time since the partnership was announced on March 9. There has been a positive inflection in April (+12% y/y) followed by even stronger traffic in May (+35% y/y). As for our proprietary Barclaycard data, the number of transactions is improving on a sequential basis (+16% m/m in May), and total spend is up (+14% m/m in May) – which we believe is partially a function of the switch from multi-month subscriptions to a single-month model for the branded GLP-1s. While we appreciate this could create somewhat of an air pocket in the NT, we do not expect any impact to longer-term results. Finally, we looked at the number of monthly active users across the Hims and Hers apps, and we found a similar trend with MAU +21% m/m in May. In total, we believe these data points suggest HIMS is experiencing a meaningful reacceleration of their GLP-1 business which supports the expected ramp over the back half of the year."