Wall Street’s Diverging Views on Hims & Hers

Hims & Hers US4330001060

Market sentiment toward telehealth provider Hims & Hers is fractured, with Bank of America issuing the most pessimistic price target on Wall Street. The firm's analysis points to overly ambitious 2026 revenue projections and potential pressure on profitability margins, casting doubt on the stock's current valuation even as the company executes an aggressive international expansion.

Bank of America analyst Allen Lutz has downgraded his outlook for Hims & Hers, slashing his price objective to $29 from $32. This now stands as the lowest target among all covering analysts, and Lutz maintains a "Sell" recommendation. His skepticism is rooted in two primary concerns.

First, he considers the consensus expectation for an additional $440 million in 2026 revenue to be overly optimistic, especially given the company's moderating growth rates observed toward the end of Q4 2025. Second, significant planned investments in personnel, technology, and vertical integration of its supply chain are expected to weigh on margins. Consequently, Lutz anticipates that hoped-for improvements in EBITDA profitability may not materialize, presenting a dual risk to both top-line growth and bottom-line results.

International Growth Amid Domestic Skepticism

Despite this Wall Street caution, Hims & Hers continues to broaden its global footprint. The company entered the Canadian market in December 2025 following its acquisition of Livewell. Simultaneously, it launched its Hers weight management platform in the United Kingdom.

Through the July 2025 acquisition of ZAVA, the firm is already operational in Germany, Ireland, and France. Management has set an ambitious long-term goal of generating nearly $1 billion in international revenue by the fiscal year 2030.

A Spectrum of Analyst Opinions

The analyst community is deeply divided on the stock's prospects. The average price target sits around $45, substantially above the current trading level and Bank of America's bearish call. The consensus rating is "Hold," which aggregates two "Buy" recommendations, six "Hold" ratings, and three "Sell" advisories.

Other firms have expressed more confidence. In December 2025, Barclays struck an optimistic tone with an "Overweight" rating and a $48 price target. Argus Research recently raised its target to $34, though it maintained a "Hold" stance.

Investors are awaiting the Q4 2025 earnings report, scheduled for late February 2026. Current analyst estimates project Q1 2026 revenue of $629 million and full-year 2026 revenue of $2.76 billion.