AI Analyst Predicts 50% Upside for HIMS Stock While Wall Street Stays Cautious
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For context, TipRanks' A.I. Stock Analysis delivers automated, data-driven evaluations of stocks based on key performance metrics, giving investors a clear and concise snapshot of a stock's potential. Notably, HIMS earns a strong score of 74 out of 100 on the tool.
AI Analyst Highlights Earnings and Positive Outlook
Hims & Hers Health's A.I. score highlights recent Q2 financials and an overall positive outlook. The earnings call showcased solid revenue and subscriber growth, along with expansion into new markets and healthcare services. Notably, Hims & Hers Health saw its subscriber count rise 31% to 2.4 million in Q2. Meanwhile, adjusted EBITDA more than doubled, reaching $82.2 million.
On the downside, the company faced challenges, including a drop in GLP‑1 revenue, negative free cash flow, and rising G&A and technology expenses. Specifically, the company's free cash flow took a significant hit, dropping to a negative $69.4 million as of June 30, 2025, compared with a positive $47.6 million a year earlier.
The A.I. tool also provides a summary of the company's recent earnings, highlighting both positive and negative updates. A screenshot is shown below for reference.
Overall, the A.I. tool sees past the recent short-term volatility. With a growing customer base, new offerings, and market expansion, the current dip could be a buying opportunity for investors focused on the bigger picture.
Wall Street Remains Cautious on HIMS Stock
After the earnings release, Wall Street remains cautious on HIMS stock. Needham's four-star-rated analyst Ryan MacDonald maintained his Hold rating. He noted that the company's upcoming hormonal health launch and Canadian expansion in 2026 offer growth potential. However, he is concerned that the near-term performance is still heavily tied to weight-loss products, which face regulatory uncertainty.
Meanwhile, BofA's top-rated analyst Allen Lutz maintained his Sell rating on HIMS at a price target of $28, predicting a downside of over 40%. Lutz stated that the company is dealing with several short-term challenges, including slow growth in its core business, which could put additional pressure on the GLP-1 segment. He believes that the second half of the year may be even tougher, and near-term cash flow is expected to remain limited as investments continue.
Is HIMS Stock a Good Buy?
Overall, Wall Street analysts have a Hold consensus rating on HIMS stock based on two Buys, seven Holds, and two Sells assigned in the last three months. The average HIMS stock price target of $49.11 implies an upside of 2.4% from the current trading level.
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Washington Post
a few seconds ago
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Air Canada could shut down completely unless the airline and its flight attendants reach a deal
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