TD Cowen reduced its 12-month price objective for Hims and Hers (NYSE:HIMS) to $17.00 from $20.00 and kept its rating at Hold, pointing to persistent near-term uncertainty tied to the regulatory treatment of compounded injectable GLP-1 products as a primary reason for caution. The firm said it expects the shares to remain under pressure until regulatory clarity improves.
The stock was trading at $14.05, close to its 52-week low of $15.15, reflecting steep declines over recent periods. Shares have fallen roughly 70% over the past year and about 65% in the last six months, underlining investor concern about the company’s outlook in the face of regulatory and operational challenges.
In its note, the analyst emphasized that Hims and Hers’ underlying core business momentum needs to strengthen. Near-term headwinds, the firm said, are likely to continue weighing on the stock until tangible signs of improvement emerge. At the same time, TD Cowen acknowledged encouraging early signs in some of the company’s newer specialty categories and pointed to international expansion as a material growth driver for fiscal 2026.
The Cowen report also reiterated a view that the company benefits from strong brand recognition, while stressing the importance of execution as management increases investment in growth initiatives. The analyst said they will continue to monitor the company’s execution against those priorities.
Independent platform analysis cited in coverage suggested the shares look undervalued at current levels and identified 16 additional research pointers for investors assessing the stock amid regulatory uncertainty.
Hims and Hers reported fourth-quarter revenue of $617.8 million, up 28% year-over-year, but slightly under BTIG’s estimate of $640.1 million and just below the consensus figure of $619 million. Adjusted EBITDA for the quarter came in at $66.3 million, a 23% increase year-over-year, yet below BTIG’s estimate of $75.8 million.
Brokerage responses to the quarter and outlook were mixed. KeyBanc left its Sector Weight rating unchanged, noting that the revenue results and the company’s revenue outlook for 2026 were largely in line with expectations. In contrast, BTIG downgraded the stock to Neutral from Buy, citing disappointing fourth-quarter results, weak guidance for the first quarter, and higher legal and regulatory risks. Leerink Partners lowered its price target to $17.50 from $20.00, specifically flagging concerns related to the company’s weight-loss business. Evercore ISI also trimmed its target to $24 from $33, citing reduced target multiples after the quarterly results.
The company is navigating regulatory scrutiny of its weight-loss offerings while simultaneously stepping up spending to support international expansion. Those twin pressures - uncertainty around regulatory outcomes and increased investment in growth abroad - frame the current analyst debate on valuation and near-term performance.
Investors and market watchers will be tracking several indicators closely: clarification on the regulatory environment for compounded injectable GLP-1s, evidence of renewed momentum in the company’s core business, execution progress in newer specialty categories, and the early returns on international investments planned through fiscal 2026.