HIMS Stock Just Got Rocked (Again) By the FDA. This Analyst Still Thinks Hims & Hers Can Surge 50%.

Profitability improved substantially, with net income tripling to $42.5 million and adjusted EBITDA reaching $82.2 million, highlighting good cost control despite the challenges. On the cash flow side, operating cash was negative $19.1 million, and free cash flow was down to negative $69.4 million, reflecting ongoing investments in growth initiatives.

With a market cap above $13 billion, 226 million shares outstanding, and annual sales approaching $1.5 billion, Hims & Hers has built considerable scale but still faces work ahead to sustain its expansion.

Hims & Hers is making a bigger push into men’s health with a new focus on oral testosterone therapy. The company teamed up with Marius Pharmaceuticals to offer KYZATREX, the first FDA-approved oral testosterone treatment, through its platform. This adds to HIMS’ product lineup and strengthens its role in personalized healthcare by giving men with low or no testosterone an affordable and innovative treatment option.

At the same time, Hims & Hers is accelerating its growth outside the U.S. through a deal to acquire ZAVA, a well-known European digital health company. This deal will give HIMS a strong presence in key markets like the UK, Germany, France, and Ireland. By building its own brand on top of ZAVA’s existing platform, Hims & Hers is setting up for significant expansion across Europe. This move helps the company spread its reach, tap into new customers, and reduce its dependence on the U.S. market while it works through current regulatory challenges at home.

For the third quarter, Hims & Hers expects revenue to fall between $570 million and $590 million. Earnings per share estimates hover around $0.09, which would mark a strong 50% increase compared to the same quarter last year. Looking at the whole year, the company projects revenue to reach between $2.3 billion and $2.4 billion, with earnings per share averaging about $0.60. That’s a big jump of 122% from last year, showing solid profit growth.

Even with the recent FDA issues affecting its stock, BTIG analysts remain optimistic. On Sept. 11, they kept their “Buy” rating and an $85 price target for HIMS stock. This price target suggests about 50% upside from where HIMS is trading now. BTIG points to the company’s gains in subscribers outside the weight-loss drugs and its expanding telehealth services as key reasons for continued revenue growth.

On the other hand, most other analysts are more cautious. All 13 surveyed give Hims & Hers a consensus “Hold” rating. Their average price target is $48.67, which is well below BTIG’s target and even under the current distressed market price.

Despite the recent FDA warning shaking up HIMS stock, the company’s solid financial performance, strategic product launches, and international expansion paint an encouraging picture. While many analysts remain cautious with a consensus “Hold” rating, BTIG’s confident “Buy” rating and $85 price target suggest there’s still considerable upside potential ahead. Given the strong revenue growth and pipeline developments, it’s likely that the shares will continue to face volatility in the short term but trend upward over the medium term as HIMS executes on its growth strategies and navigates regulatory hurdles.

On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com