Why Hims & Hers Stock Popped on Monday

Core Viewpoint - Morgan Stanley analyst Craig Hettenbach provided positive news regarding Hims & Hers Health, noting a significant increase in app downloads, yet chose not to upgrade the stock rating, maintaining an "equal weight" stance due to valuation concerns [1][5]. Group 1: App Downloads and Customer Growth - Hims & Hers app downloads surged by 47% year over year in February, primarily driven by the "Hers" app, which focuses on women's health issues [1][2]. - The increase in downloads is likely attributed to advertising related to a major sporting event, suggesting a targeted marketing strategy that appeals to women, particularly for weight loss solutions [3]. Group 2: Market and Regulatory Challenges - The FDA's recent rulings indicate that there is no longer a shortage of GLP-1 drugs from patent-holding manufacturers, which poses a risk to Hims & Hers' ability to sell these drugs in the future [4]. - Despite the positive app download figures, the potential loss of market access for these drugs could diminish the long-term value of the stock [5]. Group 3: Valuation Concerns - Hettenbach maintained a price target of $60 for Hims & Hers stock, but noted that achieving this target would result in a P/E ratio exceeding 100, which is considered expensive and unlikely [5][6].