Key insights
- Truist reiterated a Hold rating on Hims & Hers (HIMS) ahead of earnings. While Q1 revenue may exceed guidance, the firm suggests potential downward revisions to future revenue outlook due to lower average order value from branded GLP-1 memberships. Although GLP-1 subscriber trends are strong, the stock appears overvalued based on InvestingPro analysis, trading at high EBITDA and earnings multiples. Non-GLP-1 billings showed a slight increase in April after a decline in March.
Investing.com - Truist Securities reiterated a Hold rating and $18.00 price target on Hims and Hers (NYSE:HIMS) ahead of the company’s first-quarter earnings report scheduled for Monday. The stock currently trades at $28.84 with a market capitalization of $6.7 billion, though shares have declined 46% over the past year despite strong recent momentum.
The firm expects Hims and Hers could exceed the high end of its first-quarter revenue guidance by approximately $20 million to $25 million, driven by more favorable trends in March than likely embedded in the company’s outlook. Truist conducted a refresh of card data for the company based on April 2026 data in partnership with its Data Science team.
Truist said the company may need to revise its revenue outlook lower due to the relatively lower average order value associated with branded GLP-1 memberships, assuming the company continues to treat branded GLP-1 medication costs as off P&L passthrough. The firm noted that branded GLP-1 subscriber trends are tracking ahead of expectations.
The firm said any reduction to 2026 adjusted EBITDA guidance may be less pronounced than the potential revenue adjustment, as the branded GLP-1 business likely carries higher EBITDA margins than the compounded GLP-1 business. The company generated $175.66 million in EBITDA over the last twelve months while maintaining an impressive 74% gross profit margin, though InvestingPro analysis indicates the stock appears overvalued at current levels based on Fair Value metrics. According to InvestingPro Tips, HIMS is trading at high EBITDA and earnings multiples, with a P/E ratio of 57.1—one of 14+ additional insights available to subscribers.
Truist’s data indicates that billings for non-GLP-1 transactions increased 1.9% month-over-month in April on a per-day basis, following a 4.6% month-over-month decline in March. The firm said second-quarter guidance should largely reflect progress toward the updated 2026 outlook, along with sequential improvement adjusted for the impact of the Novo Nordisk partnership.
In other recent news, Hims & Hers Health has expanded its platform to allow providers to prescribe Eli Lilly weight loss medications, including Zepbound and Foundayo, to customers. This development comes as part of the company’s ongoing partnership with Eli Lilly, which has led BofA Securities to raise its price target for the company from $30 to $32, while maintaining a Neutral rating. Additionally, JPMorgan has initiated coverage on Hims & Hers stock with an Overweight rating, setting a price target of $35. The firm noted the significance of GLP-1 products in the company’s business, which have grown to over 35% of its operations.
In another development, Hims & Hers has nominated Kofi Amoo-Gottfried, a former Chief Marketing Officer at DoorDash, for election as a director at the upcoming annual shareholder meeting. Amoo-Gottfried’s extensive experience includes roles at Meta and various marketing agencies. Meanwhile, the company faced competition from Amazon’s new weight management program, which incorporates GLP-1 medications, leading to a decline in Hims & Hers stock. These recent developments highlight the dynamic landscape in which Hims & Hers is operating.
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