On Tuesday, BofA Securities maintained a positive stance on Hims & Hers Health, Inc. (NYSE:HIMS), reiterating its Buy rating and a price target of $17.25. The firm cited strong online revenue growth trends as a key factor in its assessment. According to the latest data, there are indicators of potential upside to second-quarter short-term estimates.
Sales data from Bloomberg Second Measure for April showed robust figures, and Monthly Active Users (MAU) recovered from a dip experienced in March, marking a return to month-over-month growth. Additionally, April saw an increase in web visits compared to March, further reinforcing the positive outlook.
The analyst highlighted the importance of forthcoming May data in assessing the impact of recent social media events on consumer behavior. Despite this need for further observation, the firm remains confident in the long-term growth prospects for Hims & Hers. The company's brand value, a strong product lineup that stands out due to personalization, and the potential for operating leverage are all factors contributing to the optimistic outlook.
BofA Securities' valuation of Hims & Hers at a price objective of $17.25 is based on a multiple of three times the company's projected 2024 revenue. This assessment reflects a continued endorsement of the company's strategy and market position.
InvestingPro Insights
Recent data from InvestingPro provides additional context to the positive outlook on Hims & Hers Health, Inc. (NYSE:HIMS). The company's aggressive share buyback strategy is a sign of management's confidence in the business, as reflected in the InvestingPro Tips. Furthermore, analysts are expecting net income growth this year, with three analysts revising their earnings upwards for the upcoming period, suggesting a potential upside that aligns with BofA Securities' optimistic stance.
The InvestingPro Data underscores the company's robust revenue growth, with an impressive 55.65% increase over the last twelve months as of Q1 2024, and a 45.81% quarterly revenue growth in Q1 2024. The company's gross profit margin stands strong at 82.41%, indicating efficient operations. Despite not being profitable over the last twelve months, Hims & Hers is trading at a high EBITDA valuation multiple, which could be indicative of market expectations for future profitability. This is further supported by a substantial price uptick of 75.14% over the last six months and a year-to-date price total return of 44.83%.
For readers interested in a deeper analysis, there are additional InvestingPro Tips available that can provide more detailed insights into Hims & Hers Health, Inc. To explore these further, visit https://www.investing.com/pro/HIMS and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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