Hims and Hers Initiated With a Buy Rating at Canaccord Genuity

Canaccord Genuity's analysts started covering Hims and Hers (NYSE:HIMS) with a Buy rating, setting a target price of $20. The analysts noted that while digital transformation has reshaped vast sectors of the U.S. economy, healthcare remains largely untouched, leaving consumer experiences outdated. Hims & Hers entered the market to revamp and streamline patient interactions, initially addressing conditions like hair loss and erectile dysfunction through high-quality digital health services.

The brand, known for its engaging marketing and accessible treatments, saw significant growth during the pandemic, nearly doubling its subscriber count in 2021. Contrary to the trend reversal seen by other direct-to-consumer brands post-pandemic, Hims & Hers has sustained its growth trajectory. This continued expansion is credited to the company's strategic additions to its condition and treatment offerings, backed by investments in specialized operations to ensure personalized products and efficient service delivery.