The Food and Drug Administration (FDA) has issued a warning regarding the potential risks of compounded topical finasteride, a development that could have significant implications for Hims & Hers Health (HIMS, Financial) and its industry counterparts. In response to this alert, there may be a shift by some companies, including Hims, from promoting topical versions to focusing on the oral variant, which Hims already offers.
This transition could lead to increased patient turnover in the short term for Hims, as users may be required to switch from topical to oral formulations of finasteride. The warning has put a spotlight on the company's growth strategy and its adaptability to regulatory changes. Despite the uncertainty surrounding how this FDA notice will affect Hims's specific formulations, analysts at Bank of America have highlighted the news due to its potential impact on the company's growth trends. Consequently, they have maintained an "Underperform" rating on Hims's shares.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for Hims & Hers Health Inc (HIMS, Financial) is $44.50 with a high estimate of $85.00 and a low estimate of $22.00. The average target implies an upside of 75.52% from the current price of $25.35. More detailed estimate data can be found on the Hims & Hers Health Inc (HIMS) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Hims & Hers Health Inc's (HIMS, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Hims & Hers Health Inc (HIMS, Financial) in one year is $32.38, suggesting a upside of 27.73% from the current price of $25.35. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Hims & Hers Health Inc (HIMS) Summary page.
