Canaccord Genuity reiterates Buy rating on Hims & Hers stock at $68

Hims & Hers Health (HIMS) reported mixed third-quarter results, with revenue of $600 million exceeding analyst expectations, though EPS of $0.06 missed estimates. Despite the earnings miss, strong subscriber growth, particularly an 80% year-over-year increase in multi-condition subscribers, and the revenue beat appear to have driven positive aftermarket sentiment. Canaccord Genuity reiterated its Buy rating, highlighting the company's strategic advancements in vertically integrating GLP-1 offerings and ongoing discussions with Novo Nordisk for Wegovy, even as management anticipates some growth moderation in early 2026 before normalization in the second half.

Analysis

Hims & Hers Health (HIMS) reported mixed third-quarter results, with revenue reaching $600 million, surpassing analyst expectations of $580.37 million by 3.38%. However, EPS of $0.06 missed estimates of $0.10, representing a 40% negative surprise. Despite the EPS miss, aftermarket sentiment appears positive, driven by the revenue beat and strong subscriber growth.

The company demonstrated robust subscriber growth, with multi-condition subscribers increasing 80% year-over-year and now comprising 20% of total subscribers, indicating successful cross-selling. Total revenue grew 88.69% over the last twelve months to $2.01 billion, supported by a vertically integrated strategy that enabled a 20% price reduction on GLP-1 plans. HIMS is also in active discussions with Novo Nordisk to offer Wegovy, pending FDA approval.

While fourth-quarter guidance fell below expectations, the full-year 2025 revenue guidance was only marginally reduced by $5 million at the midpoint. Canaccord Genuity reiterated its Buy rating and $68.00 price target, acknowledging anticipated growth moderation in early 2026 due to sexual health vertical evolution and shipment cadence shifts, with normalization expected in H2 2026. This suggests a nuanced but ultimately positive long-term outlook from the analyst.

Key Decisions for Investors

• Monitor HIMS's subscriber growth trajectory, particularly multi-condition subscribers, as a key indicator of successful cross-selling and long-term revenue diversification.
• Evaluate the impact of the anticipated growth moderation in early 2026 and the subsequent normalization in H2 2026 on HIMS's valuation, considering the reiterated Buy rating from Canaccord Genuity.
• Observe developments regarding HIMS's discussions with Novo Nordisk for Wegovy, as successful integration could significantly enhance its GLP-1 offerings and market position.