Hims & Hers Health, Inc. (NYSE: HIMS) experienced a massive 17.5% surge in its stock price on Wednesday, marking its best performance in a week and reaching fresh all-time highs. The telehealth company’s announcement of at-home lab testing services has fueled strong investor enthusiasm, further propelling the stock’s red-hot rally.
Hims & Hers Expands With At-Home Lab Testing Acquisition
The company revealed plans to introduce at-home lab testing, a move that is expected to revolutionize its telehealth offerings. To support this initiative, Hims & Hers has acquired Sigmund NJ, which operates as Trybe Labs, a New Jersey-based company specializing in at-home blood draws and whole-body testing. The acquisition was funded with cash on hand, and the service is anticipated to roll out within the next year.
Retail Investors Go ‘Extremely Bullish’ on HIMS Stock
The announcement triggered an overwhelming response from retail investors, sending sentiment on Stocktwits to ‘extremely bullish’ levels. Message volume soared over 150% on Wednesday, with traders celebrating the stock’s impressive gains.
A Stocktwits user shared that they had sold part of their holdings for “life-changing money” while maintaining a bullish outlook on the stock’s future. Another investor compared Hims & Hers to the “Netflix of healthcare” due to its expanding suite of telehealth services.
With the stock on track for its sixth consecutive week of gains, traders have been increasingly vocal about their expectations, with some predicting HIMS will soon hit $100. Screenshots of long positions flooded Stocktwits, reflecting the growing retail enthusiasm around the stock.
Wall Street Analysts Divided on Hims & Hers’ Future Prospects
Despite the soaring optimism, Wall Street analysts have mixed opinions on Hims & Hers’ long-term trajectory. Several firms raised their price targets, but some analysts remain cautious about the stock’s rapid rise.
Bullish Calls: BTIG and Canaccord Raise Price Targets
- BTIG analyst David Larsen increased his price target to $85 from $35, maintaining a ‘Buy’ rating. Larsen highlighted three key drivers: strong demand in the obesity health market, the confirmation of Robert F. Kennedy Jr. as Health and Human Services Secretary, and a strengthening U.S. economy. He also noted that 50% of Hims & Hers members use personalized solutions, reinforcing its long-term growth potential.
- Canaccord Genuity also raised its price target to $68 from $38, keeping a ‘Buy’ rating. The firm pointed out that HIMS shares have gained over 140% year-to-date, thanks in part to a successful Super Bowl ad and anticipated regulatory tailwinds. However, Canaccord cautioned that elevated growth expectations could result in near-term volatility as the company releases FY25 guidance.
Morgan Stanley Urges Caution With Downgrade
Not all analysts are as bullish. Morgan Stanley analyst Craig Hettenbach downgraded Hims & Hers to ‘Equal Weight’ from ‘Overweight’, despite raising his price target to $60 from $42. Hettenbach acknowledged the company’s strong business momentum but argued that its rapid rise is now fully priced into the stock. He also warned that volatility surrounding weight loss drug developments could create price swings in both directions, suggesting the stock may be due for a “breather after a torrid run.”
Short Interest and Upcoming Earnings Report in Focus
Hims & Hers is set to report fourth-quarter earnings next week, with Wall Street analysts expecting an adjusted profit of $0.10 per share on revenue of $469.68 million.
Meanwhile, short interest in HIMS stock has surged from 19.7% at the start of the year to 26.6% by the end of January, according to Koyfin data. The rising short interest could contribute to increased volatility, especially if earnings surpass expectations and trigger a short squeeze.
With Hims & Hers riding strong momentum and expanding into new healthcare services, all eyes are on its upcoming earnings report and the long-term impact of its at-home lab testing initiative.
