Hims & Hers Health (NYSE: HIMS), a telemedicine platform, saw its shares surge 157% over the past year, closing at a market high of $586 million in revenue for Q1, which is an increase of 111% year over year. By the end of Q1, the company reported having 2.4 million subscribers, up 38% year-over-year, primarily driven by a subscription-based model.
Despite the impressive growth, Wall Street analysts remain cautious. Major firms like Piper Sandler, Citigroup, Bank of America, and Morgan Stanley have issued ratings of neutral or sell, with an average price estimate of $48, indicating a 12% downside from its current trading levels as of June 4. Additionally, nearly 35% of Hims & Hers’ shares are sold short, which could lead to increased stock volatility.
While the potential for AI to further enhance their customer data utilization is promising, analysts are concerned about the stock’s volatile behavior. As a result, there is skepticism regarding whether investing in Hims & Hers at this time is prudent, given its current valuation and high levels of uncertainty.
