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.

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