HIMS - Hims & Hers: Strong Operating Leverage And Profitability Inflection

2024-05-08 10:44:13 ET

Summary

• Hims & Hers is showing strong operating leverage and maintaining high growth, which should continue in future quarters.
• The CEO's recent tweets on the Israel/Gaza situation are unfortunate from an investor perspective, but the business impact is expected to be minimal.
• Hims' economic moat is strengthening, with a strong brand, economies of scale, and a personalized medicine strategy increasing switching costs.
• We retain a BUY rating with a new target price of $15.3.

Investment Thesis

Hims & Hers ( HIMS ) is a fast-growing telehealth company that largely makes money through selling subscriptions and prescriptions that treat chronic conditions. We are long the stock and our initiation report provides a deeper look into the business, their entry into the weight loss category and low valuation. In this article, we look at how the business has improved after two quarters of results (Q4 2023 and Q1 2024)....

For further details see: