Analyst Ratings February 24, 2026

Evercore ISI Lowers Hims & Hers Target to $24, Flags Growth Slowdown and Eucalyptus Integration Risk

Quarterly results showed slower revenue acceleration and mixed margins; guidance and the $1.15 billion Eucalyptus deal weigh on outlook

By Priya Menon HIMS
Evercore ISI Lowers Hims & Hers Target to $24, Flags Growth Slowdown and Eucalyptus Integration Risk
HIMS

Evercore ISI trimmed its price target on Hims & Hers Health to $24 from $33 while keeping an In Line rating, citing lower target multiples after fourth-quarter results. The company reported $618 million in Q4 revenue, up 28% year-over-year, and $67 million of EBITDA at an 11% margin, but its first-quarter guidance and full-year 2026 outlook signal marked growth deceleration and added execution risk tied to the $1.15 billion Eucalyptus acquisition.

Key Points

  • Evercore ISI cut its price target on Hims & Hers to $24 from $33 and kept an In Line rating, citing reduced target multiples after Q4 results.
  • Q4 revenue was $618 million, up 28% year-over-year, and EBITDA came in at $67 million with an 11% margin, beating estimates; however, Q1 guidance implies growth slowing to about 7% year-over-year at the high end.
  • Evercore flagged regulatory and competitive pressures in the weight loss market and noted execution risks and a prolonged investment cycle tied to the $1.15 billion Eucalyptus acquisition.

Evercore ISI has reduced its price target for Hims & Hers Health (NYSE:HIMS) to $24 from $33 and retained an In Line rating on the stock. The firm pointed to diminished target multiples following the company’s fourth-quarter results as the basis for the revision.

Hims & Hers' share price is trading around $15.51, near its 52-week low of $15.15, and remains roughly 78% below its 52-week high of $70.43. An InvestingPro analysis included in the public data shows a Fair Value estimate of $17.53, suggesting the shares may be undervalued at current levels.


The company’s fourth-quarter financials revealed revenue of $618 million, a 28% increase from the prior year, which Evercore described as roughly in line with Street expectations. Reported EBITDA for the quarter was $67 million, with an 11% margin, a result that exceeded analysts’ estimates.

Despite those headline results, Hims & Hers issued guidance for the first quarter and for full-year 2026 that prompted caution. First-quarter revenue and EBITDA guidance landed below consensus, and at the high end implies a material slowdown in revenue growth to about 7% year-over-year. The guidance also signals margin compression as the company pushes investments across its business.

Revenue growth decelerated sequentially, from 49% year-over-year in the third quarter to 28% in the fourth quarter, while EBITDA margin was essentially flat year-over-year. The firm’s full-year 2026 guidance brackets Street estimates but requires a notable reacceleration in underlying performance and anticipates revenue contributions from the recently announced Eucalyptus acquisition.


Evercore ISI additionally highlighted elevated regulatory and competitive risk within the weight loss category and flagged increased execution challenges tied to the company’s planned $1.15 billion acquisition of Eucalyptus. The research note described an investment cycle related to the acquisition that will extend through 2026.

Market commentary also referenced investor-focused tools: InvestingPro Tips show the stock in oversold territory and note that the shares have fallen materially over the past year, with 16 additional exclusive tips available to subscribers.


Separately, Hims & Hers reported fourth-quarter 2025 EPS of $0.08, beating the forecasted $0.05 and representing a 60% positive surprise versus expectations. Revenue in the quarter was $617.8 million, marginally below the anticipated $618.73 million.

Bank of America Securities recently adjusted its own view on the company, lowering its price target to $12.50 from $13.00 while maintaining an Underperform rating. BofA cited concerns that revenue and subscriber figures fell short of expectations.

Analysts have also pointed out that the company's 2026 revenue growth guidance assumes additional revenue of $350 million to $550 million, excluding any contribution from Eucalyptus. Taken together, these updates sketch a financial and operational landscape where past outperformance on EBITDA contrasts with a decelerating top-line trend and near-term integration and investment headwinds.

Risks

  • Regulatory and competitive risk in the weight loss category could impact revenue and market share - this mainly affects healthcare and consumer health sectors.
  • Execution risk from integrating the $1.15 billion Eucalyptus acquisition, with an investment cycle through 2026, could pressure margins and cash flow - this impacts corporate M&A and healthcare operations.
  • Near-term guidance showing slower revenue growth and margin declines as the company invests could weigh on investor expectations and sector sentiment - affecting equities in consumer healthcare and subscription-based health services.

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