Wall Street sets HIMS' stock price for the next 12 months

Telehealth company Hims & Hers Health (HIMS) saw its shares plunge 12% pre-market to $55 following a Q2 2025 earnings report that, despite a 73% revenue increase to $544.8 million and an adjusted EPS beat of $0.17, missed revenue expectations of $552 million. Investor concern was further fueled by ongoing regulatory scrutiny over the company's unapproved compounded GLP-1 drug offerings. Wall Street analysts maintain a cautious 'Hold' rating, with an average 12-month price target of $42.33, indicating potential significant downside due to concerns over core business growth, integration risks, and regulatory headwinds.

Analysis

Hims & Hers Health (HIMS) is facing significant investor skepticism following its Q2 2025 earnings report, which triggered a 12% pre-market share price decline to $55. The market reaction appears driven by a top-line revenue miss, with reported revenue of $544.8 million falling short of the $552 million analyst consensus, overshadowing an adjusted EPS beat of $0.17 versus a $0.15 forecast. This revenue miss exacerbates existing concerns about the sustainability of its business model, particularly its reliance on unapproved, compounded GLP-1 drugs amid ongoing regulatory scrutiny. Despite the stock's impressive 150% year-to-date gain prior to the report, Wall Street sentiment has turned decidedly cautious. The consensus analyst rating is a 'Hold,' with an average 12-month price target of $42.33, implying a potential 33.18% downside from the previous close. Specific analyst commentary, such as Bank of America's 'Sell' rating and $28 price target, highlights fundamental risks including weak core business growth, integration challenges with the ZAVA acquisition, and over-exposure to the contentious compounded drug market.

Key Decisions for Investors

• Given the significant regulatory risk associated with unapproved compounded GLP-1 drugs, investors should closely monitor any FDA announcements or company disclosures that could impact this revenue stream.
• With the stock up over 150% year-to-date before this report and a consensus price target now implying a 33% downside, it may be prudent for investors to consider trimming positions to de-risk and realize gains.
• Future assessments of the company should focus on core business growth metrics separate from GLP-1 sales, as well as progress on the ZAVA acquisition integration, to gauge the health of its underlying operations.