Analyzing Hims Stock Price Predictions for 2024

You’ve probably seen the ads for Hims & Hers Health, but lately, you might also be seeing headlines about its stock. News flashes about a “Hims stock price target” can be confusing, with analysts citing numbers like $22 or even higher. These announcements sound important, but they often feel like a secret code. Is it a promise the stock will hit that price? A guarantee of future success?

The short answer is no, but price targets are a crucial piece of the puzzle for understanding a company’s financial outlook. This guide decodes those targets, breaking down what they are, who sets them for Hims, and what business factors drive their predictions. Our goal is not to give financial advice, but to give you the confidence to read and understand these headlines for yourself.

What is a Stock Price Target?

The easiest way to think about a stock price target is like an expert’s weather forecast for a stock. A meteorologist uses data on wind and pressure to predict the temperature next week; similarly, a financial analyst uses a company’s sales, growth, and profit data to create an educated guess on where they believe a stock’s price might be in the next 12 to 18 months. It’s their professional opinion on what the stock could be worth down the road.

This number isn’t a random guess. A professional known as a financial analyst creates the target after digging deep into the company’s health. For a company like Hims & Hers, they study its sales growth, the number of new subscribers it’s attracting, and its plans for new products. Using all that information, they build a financial model to estimate a fair value for the stock in the future.

Crucially, just like a weather forecast can be wrong, a price target is not a guarantee. It’s an educated opinion, and things can change. Unexpected company news or a shift in the overall market can send a stock in a completely different direction. Therefore, a stock price target is best seen as a single, well-researched viewpoint—one valuable piece of a much larger picture.

Who Decides the Price Target for Hims & Hers Stock?

Price targets for Hims stock are set by professionals called “Wall Street analysts.” These experts work for large financial firms like J.P. Morgan or Bank of America, known as investment banks. Their job is to become specialists on a group of companies, diving deep into their business models to form an expert opinion for large-scale investors.

However, an analyst’s research culminates in more than just a price target. They also issue a rating, which is their bottom-line recommendation. This analyst rating is a quick signal to investors about whether the expert thinks the stock is a good value at its current price. It provides crucial context to the price target itself.

These ratings are usually straightforward and can be thought of as a simple “thumbs up” or “thumbs down.” Paired with a price target, they give you a complete picture of the analyst’s view. Here’s a simple breakdown of what they mean:

• Buy: Thumbs up. The analyst believes the stock is undervalued and presents a good opportunity.
• Hold: Thumbs sideways. The analyst thinks the stock is fairly priced, suggesting no strong reason to buy more or to sell what you have.
• Sell: Thumbs down. The analyst believes the stock is overvalued and recommends investors avoid it or sell their shares.

Since different analysts can have different opinions, the next step is to understand what they are saying as a group.

The 2024 Consensus: What Analysts Are Predicting for Hims

Because each analyst comes to their own conclusion, you won’t find just one price target for Hims. Instead, you’ll see a price target range. For example, one expert might set their Hims stock price target at $15, while another who is more optimistic might aim for $22. To make sense of this, financial news often reports the consensus or average target. This is simply the mathematical average of all the individual analyst predictions, representing the general mood of the experts with a single number, like $19.

This difference of opinion is a normal and healthy part of financial analysis. Analysts look at the same Hims & Hers business data, but they weigh factors differently. One might be more excited about the company’s subscriber growth, leading to a higher forecast, while another might be more cautious about future competition, resulting in a lower target.

Ultimately, looking at the consensus and the full range isn’t about finding the single “correct” number. The real value is in understanding the overall sentiment from the experts who study the company for a living. The Hims & Hers stock forecast for 2025 is viewed positively by many, but the disagreements are just as informative as the agreements.

Why Are Some Analysts Bullish? The Key Growth Factors for Hims

Much of that optimism boils down to predictable, recurring revenue. The Hims & Hers business model is built on subscriptions. Like a Netflix or Spotify account, the company can reasonably expect to receive payment from a customer month after month. This steady stream of income from a growing subscriber base is highly attractive to analysts. Recent reports, like the Hims Q4 earnings summary, showed strong growth in this area, signaling that the company’s foundation is solid and expanding.

Beyond just adding more of the same customers, a key driver of the future growth potential of Hims Health is its expansion into new, high-demand markets. The company started with a focus on hair loss and erectile dysfunction but has since moved into areas like mental health and, most significantly, weight management. Each new category unlocks a massive new group of potential subscribers. When an analyst sees Hims successfully entering a multi-billion dollar market like weight loss, their financial models adjust for a much larger, more valuable company in the future.

Finally, there’s the power of the brand itself. The company’s modern, approachable ads have built Hims & Hers into a household name, especially among younger demographics. A strong brand is a financial asset, as it makes it easier and cheaper for the company to attract new customers. For investors, this brand recognition reduces risk and suggests that Hims can maintain its leadership position even as competition increases.

What Are the Risks? Factors That Could Pull Hims’ Stock Down

While the growth story is compelling, every investment has potential downsides. A major factor for Hims is the intense competition. The Hims & Hers competitive landscape is crowded with rivals like Ro (the company behind Roman) and numerous other startups offering similar services. This fierce competition can lead to expensive advertising wars to win over customers and pressure to lower prices, both of which can squeeze profits.

This highlights the crucial distinction between revenue and profit. Hims has been very successful at growing its revenue—the total money it brings in from sales. However, the company has historically spent heavily on marketing and expansion, meaning it wasn’t profitable. For some investors, this raises a key question: when will the company stop spending more than it earns? The journey from high growth to consistent profitability is a significant hurdle that the market watches closely.

Finally, the world of telehealth operates under a specific set of rules. The regulations that allow doctors to prescribe medications online have evolved, especially since 2020. Any future changes to these laws, whether at the state or federal level, could create new obstacles for Hims’ business model. While not an immediate threat, this regulatory uncertainty is one of the background risks of investing in Hims stock that analysts always keep in mind.

Hims vs. Teladoc: What’s the Difference for an Investor?

To understand Hims’ place in the market, it’s helpful to compare it to another big name: Teladoc. The key difference lies in how they find their customers. Hims uses a Direct-to-Consumer (D2C) model, marketing straight to individuals through ads on TV and social media. You see an ad, visit the site, and become the customer. In contrast, Teladoc primarily uses a Business-to-Business (B2B) model. Its main clients are large corporations and insurance companies, who then offer Teladoc’s services to their employees or members as a health benefit.

This fundamental difference in approach creates distinct pros and cons. The D2C model gives Hims direct control over its brand and growth, but all that advertising is expensive and can weigh on profits. Teladoc’s B2B strategy can be more efficient, as signing one big corporate client can bring in millions of potential users at once. The risk, however, is a reliance on a smaller number of huge contracts.

Neither model is automatically better; they represent different strategies within the telehealth sector. Analysts watch Hims for its brand strength and ability to attract individual subscribers efficiently. For Teladoc, they focus more on major contract renewals and its integration within the traditional healthcare system.

How to Use This Information: From Confused to Confident

A headline about a Hims stock price target is an expert’s forecast, not a fact carved in stone. You can now look past the single number and begin to understand the story of optimism or caution it’s trying to tell. This allows you to ask more powerful questions. Instead of wondering, “Should I buy or sell HIMS stock?”, you can now ask why an analyst arrived at that number. What factors do they find compelling, and what potential risks did they acknowledge?

This new lens is your starting point for exploring bigger questions, like whether HIMS is a good long-term investment for you. A price target isn’t the final answer; it’s an invitation to dig deeper into the company’s health and future potential, using the analyst’s opinion as just one piece of your research. Each time you see a price target headline, you can practice this new skill, building the confidence that comes from genuine understanding. That ability to think for yourself is the most valuable asset you can own.