Jefferies has left its rating on Hims and Hers Health Inc. (NYSE:HIMS) at Hold and kept a $16.00 price target, saying that while the company's strategic plans are credible, near-term guidance and market conditions justify a neutral position.
The firm acknowledged a number of corporate initiatives, including expansion beyond the U.S. and a broader shift toward more holistic and personalized healthcare services. Jefferies also noted management's emphasis on improving affordability and access to healthcare and prescription medications within the United States.
Despite those strategic positives, the Jefferies analyst called attention to the company's EBITDA guidance midpoint, which fell short of expectations. That guidance miss has put pressure on the share price in the near term as investors digest the weaker-than-expected margin outlook.
Market performance reflects that caution. Hims and Hers shares have declined about 70% over the past year and are currently trading near their 52-week low - quoted at $15.53 versus a low of $15.15. InvestingPro data cited by the analyst indicates the stock's relative strength index (RSI) places it in oversold territory, while the company retains a "GREAT" financial health score of 3.22.
Jefferies also highlighted legal uncertainty as a continuing weight on the shares. The firm said that ongoing legal risk - described as a legal overhang - factored into the decision to keep the Hold rating.
In the firm's view, Hims and Hers' strategic direction remains sound, but given current market dynamics and specific guidance concerns, a neutral stance is appropriate. InvestingPro analysis, referenced by the analyst, nonetheless suggests the shares may be undervalued at current price levels.
Recent company results show mixed signals. Hims and Hers reported fourth-quarter revenue of $617.8 million, a 28% increase from the prior year. That topline, however, missed BTIG's projection of $640.1 million and fell just below a consensus estimate of $619 million. Adjusted EBITDA came in at $66.3 million, representing 23% year-over-year growth; the EBITDA figure was short of BTIG's $75.8 million estimate but above the consensus expectation of $62 million.
Following the results, several brokerages updated their stances and price targets. Truist Securities and TD Cowen each trimmed their targets - to $18 and $17 respectively - while maintaining Hold ratings. KeyBanc kept its Sector Weight rating, noting that management's revenue outlook aligns with expectations and pointing out plans for increased investment in 2026.
BTIG moved more decisively, downgrading Hims and Hers to Neutral from Buy, citing disappointing results and heightened legal and regulatory risks. The company also issued a first-quarter revenue forecast that was below Wall Street estimates as it contends with regulatory scrutiny and ramps up spending tied to international expansion.
Taken together, the coverage updates underscore a tension between healthy revenue growth and profit guidance that fell short of some expectations, compounded by legal and regulatory questions that investors are watching closely.
For investors, the picture is therefore mixed: solid top-line momentum and strategic investments weigh against guidance shortfalls and an unresolved legal backdrop. Analysts and market data cited in coverage reflect both the potential upside signaled by undervaluation metrics and the near-term risks tied to profitability and regulation.