Morgan Stanley has initiated coverage on Hims & Hers Health, Inc. (HIMS, Financial) with an Overweight rating and a price target of $42 per share, implying a 37% upside from its current trading price of around $30.62.
Analyst Craig Hettenbach described Hims & Hers as a “compelling compounding investment,” highlighting the company's strong track record of growth in digital health and direct-to-consumer healthcare. Morgan Stanley estimates 30% annual revenue growth through 2026, building on the company's remarkable 80% annual growth over the past three years. The note praised the company's scalable technology platform, which positions it well for continued market share gains and operational efficiency.
This bullish outlook comes at a critical time for Hims & Hers, as investor sentiment remains focused on its expanding weight-loss offerings and ability to capture further demand.
Looking ahead, this is expected to be another volatile week for Hims & Hers, as the FDA's decision regarding the tirzepatide shortage is set to be announced on Thursday, a decision that could impact Hims & Hers ability to offer compounded GLP-1 solutions and its weight-loss business trajectory.
