Jefferies Cuts Hims & Hers Price Target to $24.50 After Q1 Loss
Jefferies cut Hims & Hers Health’s price target to $24.50 from $25.50 after Q1 revenue fell short and the company reported a surprise loss driven by its weight-loss GLP-1 business transition. Shares plunged 13.11% to close at $25.32, while JPMorgan trimmed its target to $33.00 and Canaccord lifted theirs to $32.00.
1. Jefferies Lowers Price Target
Jefferies reduced its 12-month price target for Hims & Hers Health to $24.50 from $25.50 after evaluating weaker Q1 metrics and strategic challenges. At the time of the cut, the stock traded at $25.28, placing the new target below market price.
2. Q1 Financial Results
Hims & Hers reported Q1 revenue of $608 million versus analysts’ $616.5 million estimate and posted a $0.40 loss per share compared with an expected $0.01 profit, marking an unexpected quarterly shortfall.
3. Strategic Shift in Weight-Loss Business
The company is transitioning its weight-loss segment from compounded GLP-1 medications to branded alternatives, a move that increased restructuring costs and disrupted sales recognition during the quarter.
4. Market Reaction and Analyst Sentiment
Shares dropped 13.11%, closing at $25.32, on the earnings and guidance news. JPMorgan cut its price target to $33.00 while maintaining an Overweight rating, and Canaccord raised its target to $32.00, calling the quarter a “transition speed bump.”