Needham Lifts PT on Hims & Hers Health (HIMS) Stock, Maintains Buy Rating

On June 4, Needham upped the price objective on Hims & Hers Health, Inc. (NYSE:HIMS)’s stock to $65 from $61, while maintaining a “Buy” rating. The decision comes after the company announced its plans to acquire ZAVA, which is a leading digital health platform in Europe. The move is expected to help Hims & Hers Health, Inc. (NYSE:HIMS) expand its footprint in the UK, resulting in the official launch in Germany, France, and Ireland.

Needham Lifts PT on Hims & Hers Health (HIMS) Stock, Maintains Buy

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

Hims & Hers Health, Inc. (NYSE:HIMS) is expected to establish its own branded presence, using the robust ZAVA platform, in each of these European markets over the coming quarters. While Hims & Hers Health, Inc. (NYSE:HIMS) plans to share more details about the offerings and their rollout soon, it anticipates the deal to be accretive by 2026.

The firm’s analysts have a positive outlook on the acquisition, highlighting that the company’s current offerings remain well-suited for the broader European market, which can result in a long-term growth opportunity. The consideration will be comprised of 100% cash, which will be financed from the company’s balance sheet at closing.

Furthermore, the acquisition is anticipated to close in H2 2025, and Hims & Hers Health, Inc. (NYSE:HIMS) expects to continue to expand globally as demand for personalized healthcare grows.

Hims & Hers Health, Inc. (NYSE:HIMS) operates a telehealth platform, connecting consumers to licensed healthcare professionals.

While we acknowledge the potential of HIMS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than HIMS and that has 100x upside potential, check out our report about this cheapest AI stock.

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