Hims & Hers Health (NYSE: HIMS) faces mixed analyst sentiment in June 2025, with concerns about slowing growth momentum overshadowing the company’s impressive first-quarter financial performance. The telehealth stock has drawn cautious outlooks from major investment firms despite reporting record revenue growth.
Q1 2025 Financial Results Show Explosive Growth
Hims & Hers Health delivered exceptional first-quarter results, with revenue of $586.0 million, up 111% year-over-year in Q1 2025. The company also reported net income of $49.5 million and Adjusted EBITDA of $91.1 million in Q1 2025, demonstrating strong profitability alongside rapid revenue expansion.
Subscribers grew to 2.4 million, up 38% year-over-year in Q1 2025, indicating continued customer acquisition success across the platform’s various health and wellness offerings. The company has affirmed full year 2025 revenue guidance of $2.3 billion to $2.4 billion, suggesting management confidence in sustained growth momentum.
Morgan Stanley Maintains Cautious Stance
Morgan Stanley analysts maintained their Equalweight rating on HIMS stock with a price target of $40, reflecting a measured approach to the telehealth company’s valuation. This conservative outlook comes despite the company’s strong financial performance and subscriber growth metrics.
Morgan Stanley noted that HIMS app downloads saw ‘sharp deceleration’ in May, raising concerns about future user acquisition trends. The investment bank highlighted deceleration in growth momentum regarding the company’s app downloads and web traffic slowdown as key factors influencing their cautious position.
Analyst Price Targets Show Wide Range
Current analyst sentiment reflects significant uncertainty about HIMS stock’s fair value. Based on 11 Wall Street analysts offering 12-month price targets, the average price target is $42.09 with a high forecast of $68.00 and a low forecast of $25.00.
This wide range illustrates the divergent views on the company’s growth trajectory and competitive positioning in the increasingly crowded telehealth market. The average price target represents a -29.59% change from the last price of $59.78, suggesting many analysts believe the stock is currently overvalued.
Competitive Pressures Mount
The telehealth sector faces intensifying competition, with GoodRx launching an ED offering meant to compete with Hims & Hers, according to Citi analysts. This competitive dynamic adds pressure on HIMS to maintain its market share and pricing power in key therapeutic areas.
Stock Performance and Outlook
The current stock price of HIMS is $55.25 as of June 10, 2025, with a market cap of approximately $12.7 billion. The stock has experienced significant volatility as investors weigh strong financial results against concerns about slowing user acquisition metrics.
Despite near-term headwinds, HIMS continues to deliver strong subscriber and revenue growth, with the business model’s shift to a subscription platform showing promise. The company’s ability to maintain growth rates while facing increased competition will be crucial for future stock performance.
The telehealth company’s focus on expanding its weight-loss and wellness offerings positions it well for long-term growth, though investors should monitor user acquisition trends and competitive dynamics closely.