Hims & Hers Health (NYSE: HIMS) stock surged more than 18% in regular trading on Tuesday after several analysts raised their price targets, despite the telehealth company posting mixed first-quarter 2025 results and issuing weaker-than-expected guidance for the current quarter.
Hims & Hers reported adjusted earnings per share of $0.20 for the quarter, missing the consensus estimate of $0.23. However, revenue soared 111% year-over-year to $586 million, beating analyst expectations of $538.9 million.
The company also posted a 38% year-over-year increase in its subscriber base, reaching 2.4 million. However, gross margin contracted to 73%, down from 82% in the same period last year.
Hims & Hers reaffirmed its full-year 2025 revenue forecast of $2.3 billion to $2.4 billion, in line with market expectations. It also raised its adjusted EBITDA guidance to a range of $295 million to $335 million.
Second-quarter guidance, however, was less encouraging. The company expects revenue between $530 million and $550 million, missing the consensus estimate of $564.5 million. Adjusted EBITDA is projected at $65 million to $75 million.
In addition to its short-term outlook, Hims & Hers introduced long-term targets through 2030, aiming for at least $6.5 billion in annual revenue and $1.3 billion in adjusted EBITDA.
Despite the mixed numbers, Hims & Hers Health (NYSE: HIMS) stock rallied after multiple analysts raised their price targets, helping boost investor sentiment.
Piper Sandler analyst Korinne Wolfmeyer raised her price target to $39.00 from $35.00, maintaining a “Neutral” rating. Stifel lifted its target to $28 from $26, while holding an “Underperform” rating on the shares. TD Cowen adjusted its target from $30.00 to $38.00 and maintained a “Hold” rating. Leerink Partners also increased its price target to $42.00 from $40.00, reiterating a “Market Perform” rating.
The upgrades reflect a favorable view of Hims & Hers’ growth trajectory, even as near-term fundamentals remain mixed. Investors appeared to focus on the company’s strong top-line momentum and long-term ambitions, pushing shares sharply higher on the day.
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