Hims Stock Has a $24 Price Target, Trades at $21, and Nobody Agrees on Anything

A company that was nonexistent eight years ago is now generating $2.35 billion in revenue annually and making a real profit in a glass-fronted office building in San Francisco’s Mission District. The majority of companies would view that as a noteworthy achievement. In less than a year, Hims & Hers Health’s stock price dropped from $70 to $13. It then recovered to about $21, but it is still 40% below where it began in 2026. As this develops, there’s a recurring sense that the company and the market are telling two different stories, and that both may be partially correct.

Hims & Hers runs a telehealth platform that links patients with medical professionals for a variety of ailments, including weight control, dermatology, mental health, and sexual health. The direct-to-consumer, subscription-based model is based on the finding that a sizable segment of Americans would prefer to use a phone app to manage their healthcare rather than wait in a waiting room. Millions of paying subscribers and a revenue trajectory that most consumer health companies would struggle to match have since validated that insight, which seemed almost novel when founder Andrew Dudum launched the company in 2017. Revenue for the fourth quarter of 2025 was $617.82 million, up 28% from the previous year. The net income for the year was $128.37 million. The business is profitable, expanding, and hiring at an astounding rate; in just one year, headcount increased by almost 50% to 2,442 workers.

Nevertheless, over the last six months, the stock has dropped by about 66%. A quick diversion into the GLP-1 weight loss medication drama that has dominated healthcare investing for the past two years is necessary to comprehend the market’s anxiety, which is focused on a few key issues. At a time when branded supply was limited and the FDA permitted compounding pharmacies to fill the void, Hims & Hers made a bold move into compounded semaglutide, which is essentially a compounded version of Novo Nordisk’s popular weight loss medications Ozempic and Wegovy. That company expanded quickly and became a major source of income.

The legal foundation for compounding those particular medications was then jeopardized when the FDA declared the shortage to be over, and the regulatory landscape quickly changed beneath Hims & Hers’ feet.

The market may be pricing in a worst-case scenario that doesn’t really happen. The business has been outspoken about shifting to a customized, patient-specific compounding model, which it claims is still legally justifiable despite the shortage announcement. Additionally, it has been growing into related weight management services and working toward branded GLP-1 partnerships. The main question hanging over the stock at the moment is whether that pivot executes smoothly, and it won’t be fully resolved until several more quarters of financial results provide a clearer picture. One of the most anticipated events in the consumer health sector this spring is expected to be the May 11 earnings date.

An additional degree of uncertainty is introduced by the threat posed by Amazon Pharmacy. Hims & Hers directly competes in the area where Amazon is most actively growing—convenient, low-friction access to medications that people want without the friction of traditional healthcare. Amazon’s entry into prescription medication delivery has been gradual but increasingly difficult to ignore. Another competitive factor is introduced by Eli Lilly’s Foundayo weight-loss pill, which offers consumers a branded substitute that completely avoids the compounding debate. Hims & Hers seems to be under pressure from several angles at once: Amazon from one side, branded pharmaceutical companies from another, and regulatory pressure from above.

The difference between those headwinds and the real financial performance is what makes the stock intriguing rather than just problematic. A truly profitable, rapidly expanding telehealth company’s P/E ratio of about 41 is not particularly costly, especially considering that the stock’s three-year return is still 118%, significantly higher than the S&P 500’s 68% during the same time frame. The majority of analysts have Hold ratings rather than outright Sell recommendations, and the one-year analyst consensus price target is $24, suggesting about 12% upside from current levels. That doesn’t fit the description of a business that analysts believe is in grave danger. They are unsure about a company’s profile, which is a more complex and possibly more truthful stance.

It’s difficult to overlook the fact that Hims & Hers has a volatile, high-beta stock history (the five-year beta is 2.32), so swings of this size aren’t totally unexpected in hindsight. After going public through SPAC in 2019, the company benefited from the pandemic telehealth boom, garnered a lot of enthusiasm from retail investors during its GLP-1 surge, and is currently dealing with the fallout from all of that excitement colliding with regulatory reality. In a market where the majority of rivals are still losing money, the underlying company continues to make money. The question is whether that eventually shows up in the stock price. So far, it hasn’t. However, the statistics indicate that it most likely ought to.