Investing.com -- BTIG starts on Hims Hers Health Inc (NYSE:HIMS) with a "buy" rating and a price target of $35 given the company’s disruptive direct-to-consumer healthcare model. Brokerage highlighted HIMS' strong growth, innovative technology, and wide-ranging service offerings.
HIMS, which serves over 2 million members, reported a 44% year-over-year membership increase in Q3 2024. The subscription-based platform addresses a variety of health needs, including obesity, sexual health, mental health, and dermatology.
“We like how HIMS services a wide range of members including patients that are 65+, those with incomes below $50,000 per year, and a wide range of age, income, and ethnicity profiles,” analyst added.
“US labor markets are very healthy, disposable incomes seem high, the cost of HIMS' services in many cases are lower than copays or coinsurance, and many lifestyle related categories that HIMS supports typically are not covered by insurance.”
A significant growth driver for HIMS is its focus on obesity management, particularly through the use of compounded GLP-1 medications such as Semaglutide. These personalized treatments, often combined with vitamins or tailored dosages, aim to enhance efficacy and minimize side effects. BTIG noted the immense potential in this market, given that over 70% of Americans are either overweight or obese.
Trading at a current EV/EBITDA multiple of 16.2x on 2026 estimates, BTIG sees upside potential, assigning a valuation multiple of 22.8x to derive the $35 price target.