Citi Keeps Hims & Hers (HIMS) Price Target, Maintains Sell Rating

Citi is holding firm on its Sell rating for Hims & Hers Health, Inc. (NYSE:HIMS), according to a report released on June 3, keeping a $30 price target even as the company moves to expand its global presence with the acquisition of European digital health provider Zava.

The deal marks a strategic push into key markets including the U.K., France, Germany, and Ireland. Zava’s platform closely mirrors Hims & Hers Health, Inc. (NYSE:HIMS)’s U.S. operations, offering virtual consultations and prescription services across popular therapeutic areas such as sexual health, dermatology, weight management, and hair care. According to Citi’s analysis, this alignment allows for a smoother integration of services and potential cost synergies.

A nurse in a telehealth platform talking with a patient on video call for consultation.

Despite acknowledging the acquisition’s role in accelerating Hims & Hers’ international growth and personalization initiatives, Citi raised a red flag regarding price differentials. Specifically, the firm noted that branded weight loss medications appear to be significantly cheaper on Zava’s platform compared to the U.S. offering—an inconsistency that could pose margin challenges or raise pricing strategy questions in future quarters.

The firm also suggested that while the acquisition bolsters geographic diversification, it does not fundamentally alter its cautious stance on valuation or long-term profitability. Citi emphasized the need for more clarity on how the company plans to harmonize pricing models across markets without diluting brand value or eroding earnings.

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