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Learn Why The Bull Case For Hims & Hers Health (HIMS) Could Change Following Testosterone Therapy Expansion

Simply Wall St · 2d ago
  • Hims & Hers Health recently broadened its men’s health line with new injectable and oral testosterone therapies and introduced Hers Hair to UK women, pairing both launches with clinician-led virtual care and personalised treatment plans.
  • These rollouts show Hims & Hers Health leaning into higher-complexity, recurring treatments in men’s hormones and female hair loss, which can influence demand patterns, customer retention, and operating costs across its telehealth platform.
  • We will look at how Hims & Hers Health’s broader testosterone offering reshapes the investment narrative around its subscription driven telehealth model.
Spot other telehealth and consumer-health platforms that could be setting up for similar subscription momentum by scanning our curated list of 21 high quality undiscovered gems.

Hims & Hers Health Investment Narrative Recap

To own Hims & Hers Health, you need to believe the telehealth platform can turn its growing subscriber base and new higher complexity services into sustainable cash generation while managing rising legal, regulatory, and payment scrutiny. The key near term swing factor remains whether investments in AI, pharmacy infrastructure, and specialists begin to ease pressure on losses and free cash flow.

The expanded testosterone and UK Hers Hair launches speak directly to that thesis, since they push the mix further into recurring, clinically supervised care. They do not change the biggest current risk, which is profitability strain from heavier spending and a tilt toward lower margin categories and geographies that could hold back earnings if efficiencies take longer to show up.

The new injectable and oral testosterone replacement therapies look most relevant for where Hims & Hers Health goes next. Low testosterone already sits alongside weight loss and other hormone care as a focus area, and more treatment options give clinicians additional tools to keep appropriate patients inside the subscription ecosystem with testing, renewals, and follow up consults.

For catalysts, this broadened TRT lineup feeds the same engine as GLP 1 weight management and at home labs. If the firm can use AI driven support and in house pharmacy capacity to serve these longer duration regimens at lower unit cost while keeping dispute and regulatory issues contained, the combination of deeper relationships and better efficiency remains the operational prize investors are watching.

What The Current Hims & Hers Health Forecasts Assume

Analysts are effectively asking you to underwrite a very different Hims & Hers Health by the end of the decade. Their models lean on revenue expanding at 21.7% a year over the next three years, profit margins swinging from a loss of 5.5% today to a positive 5.1%, and earnings shifting from a loss of US$142.0 million to a projected profit of US$235.7 million around 2029. That move in profitability implies an earnings improvement of about US$377.7 million, even before you consider the spread between the most bullish forecast at US$392.4 million and the more cautious view at US$166.3 million. To support this, those same forecasts build in roughly 2.49% annual growth in the share count, a long term P/E of 40.9x on those future earnings, and a discount rate in the low single digits, all of which shape how much of the telehealth story is already embedded in the current price.

The valuation work on Hims & Hers Health then ties these inputs to a specific 2029 snapshot. Consensus points to revenue of US$4.6b and earnings of US$235.7 million in that year, which is the anchor for an average price target of US$31.15 compared with a recent share price of US$29.00. That gap of 6.9% suggests many on the Street see the stock as roughly in line with their base case, even with a higher P/E multiple than the broader US healthcare sector at 24.3x. For you as an investor, the real question is not whether that target is precise, but whether the implied mix of top line expansion, margin repair, and subscription stickiness feels reasonable given the legal, regulatory, and payment headwinds already visible today.

Hims & Hers Health's narrative projects US$4.6b revenue and US$235.7 million earnings by 2029. This setup assumes 21.7% yearly revenue growth and an earnings improvement of about US$377.7 million from a loss of US$142.0 million today.

Uncover why Hims & Hers Health's fair value indicates a 12% potential upside to its current price that may not last much longer.

NYSE:HIMS 1-Year Stock Price Chart
NYSE:HIMS 1-Year Stock Price Chart

Exploring Other Perspectives

One alternate view questions whether Hims & Hers Health can keep up its subscriber momentum once regulatory scrutiny fully bites. The most cautious analysts only pencilled in revenue of about US$4.1b and earnings of roughly US$163.7 million by 2029 before this TRT and Hers Hair news, which illustrates how wide opinion runs. Use that spread as a prompt to explore several scenarios instead of anchoring on a single forecast.

Explore 17 other Hims & Hers Health fair value estimates, including one that suggests as much as 10% downside from the current price.

Form Your Own Verdict

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