BofA Securities reduced its price target on Hims & Hers Health Inc. stock to $12.50 from $13.00 while keeping an Underperform rating, the firm said. The shares were trading at $15.51 at the time referenced, hovering close to a 52-week low of $15.15 after a roughly 70% drop over the prior 12 months.
In its analysis, the bank described the company's most recent quarter as mixed. Revenue and subscriber metrics came in below consensus, while adjusted EBITDA outperformed expectations. Management's revenue growth guidance for 2026 assumes an additional $350 million to $550 million of revenue growth, excluding contributions from Eucalyptus.
BofA signaled difficulty in reaching even the low end of that guidance range. The firm reported that it applied generous assumptions for the GLP-1 business and for planned U.S. launches in its model, yet still found the guidance challenging to attain. The bank expects the GLP-1 segment to contract in 2026 and flagged a trend of GLP-1 products shifting to other direct-to-consumer channels as an increasing headwind.
The firm also addressed the company's international strategy, saying it is reasonable for Hims & Hers to operate its non-U.S. business at breakeven for multiple years. However, running the international operations at breakeven would exert downward pressure on consolidated margins compared with Street expectations.
BofA raised concerns about litigation exposure as another element weighing on the business. The bank compared current legal risk involving the FDA, Novo Nordisk and the SEC to the opioid-related litigation that previously targeted drug distributors. Those potential liabilities factor into BofA's valuation approach.
The revised price target is derived from a multiple of 15 times estimated 2026 EBITDA, explicitly excluding contributions from GLP-1s and excluding potential litigation liabilities from the valuation.
Separately, Hims & Hers reported fourth-quarter 2025 financial results showing an earnings-per-share beat. The company posted EPS of $0.08 versus an expected $0.05, a roughly 60% surprise. Revenue for the quarter was $617.8 million, narrowly missing the projected $618.73 million.
That set of results underscores the mixed picture: an ability to exceed EPS expectations in the quarter despite a small revenue shortfall. Observers note the contrast between the near-term earnings surprise and the longer-term revenue and growth uncertainties that BofA highlighted.
Finally, a Pro analysis referenced by market tools suggests the stock could be undervalued at its current price, and notes that 16 additional ProTips are available to subscribers. The analysis sits alongside the more cautious view from BofA, reflecting differing interpretations of the company's trajectory and valuation today.
Context for investors
- Valuation: BofA's target uses 15x 2026 estimated EBITDA, excluding GLP-1 contributions and litigation liabilities.
- Guidance assumptions: Management’s 2026 outlook depends on $350 million to $550 million of incremental revenue growth excluding Eucalyptus.
- Recent results: Q4 2025 EPS beat consensus while revenue was a marginal miss.