Canaccord Genuity analyst Maria Ripps raised her price target for Hims & Hers Health (NYSE: HIMS) to $68.00, up from the previous target of $38.00. Ripps also maintained a Buy rating on the stock. The upgrade follows a successful Super Bowl ad campaign and the recent confirmation of Robert F. Kennedy Jr. as the Health and Human Services Secretary, both of which fueled a more than 40% surge in HIMS shares last week. The company’s stock has jumped over 140% year-to-date.
Ripps noted that the company’s forward growth expectations might now be significantly higher, which could introduce greater near-term volatility. This is particularly relevant as the company prepares to release its FY25 guidance.
In addition, she acknowledged the ongoing semaglutide shortage but expressed confidence in the company’s ability to maintain growth through personalized dosing and a more favorable regulatory environment.
Ripps also pointed to the potential long-term benefits of the Super Bowl commercial, which is expected to enhance Hims & Hers’ reputation as an affordable and accessible digital health platform. This marketing push could help sustain the company’s elevated growth trajectory. Although the full impact of the surge in traffic from the commercial has not yet been incorporated into the current forecasts, Ripps anticipates that estimates will likely rise as the year progresses.
Even with the expanded valuation, Ripps views the stock as a strong performer, classifying it within the ‘Rule of 50+’ category for 2025. This label indicates a positive outlook for companies exhibiting both robust revenue growth and strong profit margins exceeding 50%. The analyst also noted that any additional subscriber growth for Hims & Hers Health (NYSE: HIMS) will likely have a lasting positive impact on the business model, thanks to the retention advantages of its subscription-based model that focuses on non-acute, chronic conditions.
