Citi Says Hims & Hers’ Full-Year Outlook Indicates ‘Hefty’ Q4 Earnings Lift, Warns Of Execution Risks
HIMS
Key points:
- Citi lowered its price target on the stock to $33 from $35 and maintained a ‘Neutral’ rating, according to The Fly.
- Hims reported a 40% jump in second-quarter revenue to $753 million, beating analysts’ estimates of $730.1 million, according to Fiscal.ai.
- TD Cowen said investments in international expansion, branded weight-loss offerings, artificial intelligence, and new therapies are pressuring near-term margins.
Hims & Hers Health (HIMS) was in focus on Tuesday following a wave of Wall Street action after its second-quarter results, with Citi warning that the company faces heightened execution risk as its full-year outlook requires a “hefty” increase in fourth-quarter earnings before interest, tax, depreciation and amortization
Citi analyst Daniel Grosslight lowered his price target on Hims & Hers to $33 from $35 and maintained a ‘Neutral’ rating
At the time of writing,HIMS shareswere down 0.8%
HIMS Raises FY 2026 Revenue Guidance
On Monday, the telehealth firm reported a 40% jump in Q2 revenue to $753 million, beating analysts’ estimates of $730.1 million The topline increase was driven by the addition of about 300,000 subscribers, bringing its global subscriber base close to nearly 2.9 million
However, loss per share came in at $0.37 per share, significantly wider than the consensus estimates of a loss of $0.05 per share. Adjusted EBITDA fell to $60.3 million from $82.2 million a year earlier, while free cash flow was negative $68 million, though Hims expects a reversal in the second half of the year
Hims raised its 2026 revenue outlook to between $3.1 billion and $3.3 billion, up from its earlier guidance of $2.8 billion to $3 billion. Hims expects adjusted EBITDA of $275 million to $325 million, reflecting a margin of 9% to 10%, slightly lower than its previous estimates
Wall Street Remains Neutral On HIMS
TD Cowen said investments in international expansion, branded weight-loss offerings, artificial intelligence, and new therapies are pressuring near-term margins. It raised the price target to $30 from $25 and kept a ‘Hold’ rating
BofA called the second quarter “good,” but described the updated guidance as mixed. While it raised HIMS price target to $32 from $30, it maintained a ‘Neutral’ rating. Morgan Stanley lifted its target to $28 from $21 but kept an ‘Equal Weight’ rating, adding that the earnings report offered “plenty for both bulls and bears.”
The stock has a consensus 12-month price target of $30.38. Eleven of the 15 analysts covering the stock have a ‘Hold’ rating, three have a ‘Buy’ rating, while one holds a ‘Sell’ rating
HIMS Bulls Eye ‘Huge Bargain’
Retail sentiment surrounding HIMS on Stocktwits remained in the ‘bullish’ zone over the past 24 hours, amid ‘high’ message volumes
One user called the stock a “huge bargain.”
Another user said the revenue beat is the most critical element
HIMS shares have dropped a little over 5% so far in 2026
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