Leerink Partners lowered its price target on Hims and Hers Health to $17.50 from $20.00 and left its rating at Market Perform, citing a set of persistent uncertainties tied to the company’s weight-loss offerings and the challenge of integrating an expanding portfolio of products.
The stock currently trades at $15.51, close to its 52-week low of $15.15, and has fallen roughly 70% over the past year. Leerink highlighted that revenue recognition questions and ongoing regulatory and legal inquiries related to weight-loss products undermine confidence in the company’s public valuation.
Earnings and margins
Despite the headwinds, the company posted a positive surprise on fourth-quarter 2025 earnings per share of $0.08, beating the $0.05 consensus. Revenue for the quarter was $617.8 million, narrowly missing the $618.73 million forecast, and represented 28% year-over-year growth. Analysts noted that adjusted EBITDA exceeded expectations; Evercore ISI specifically pointed to an 11% margin in adjusted EBITDA.
Separately, an InvestingPro tip referenced in research materials indicates net income is expected to grow this year, and that the company sustains a 75% gross profit margin. Leerink observed that while Hims and Hers can generate meaningful cash flow if revenue expands as management expects, the near-term outlook features margin pressure. The firm forecasts organic margin contraction in fiscal 2026, compounded by additional margin dilution attributed to the Eucalyptus acquisition.
Valuation and multiples
Leerink rolled forward its 10 times EV/EBITDA target multiple from fiscal 2026 to fiscal 2027 on the basis of lower estimates. The company currently trades at an EV/EBITDA multiple of 21.3x, a level the firm suggests is difficult to reconcile with the uncertainties it has identified. Leerink also said it could not be confident in the company’s execution pathway if further issues materialize related to GLP-1 products.
Peer analyst moves
Other brokerages adjusted their outlooks after the quarter. Evercore ISI cut its price target from $33 to $24 and kept an In Line rating, noting a reduction in target multiples after the earnings release. BofA Securities lowered its target from $13 to $12.50 and maintained an Underperform rating, pointing to mixed results where revenue and subscriber counts fell short of expectations even as adjusted EBITDA beat forecasts. BofA additionally called out that 2026 revenue guidance includes an incremental $350 million to $550 million excluding Eucalyptus.
Implications
The combination of regulatory and legal questions around weight-loss products, revenue recognition issues, and near-term margin pressure frames a cautious analyst view even as certain profitability metrics and an EPS beat provide some counterbalance. The stock’s valuation and recent price performance reflect the market grappling with these competing signals.