HIMS Stock Just Got Rocked (Again) By the FDA. This Analyst Still Thinks Hims & Hers Can Surge 50%.

Industry Overview - The global telehealth market reached approximately $123.26 billion in 2024 and is projected to grow to $455.27 billion by 2030, reflecting a steady annual growth rate of around 24.7% starting from 2025 as more healthcare providers and patients adopt remote care options [1] - The broader healthcare sector has remained stable, with the S&P 500 Health Care Index trading in a narrow range just above 1,590 points recently [1] Company Performance - Hims & Hers Health is a digital health platform that connects individuals with licensed healthcare providers and offers personalized treatments, focusing on making healthcare accessible and affordable through an online platform [4] - Despite regulatory challenges, Hims & Hers has shown strong resilience, with its stock rising more than 230% over the past year and a year-to-date gain of over 130%, indicating growing investor confidence [5] - In the second quarter of 2025, Hims & Hers reported revenue of $544.8 million, a 73% increase from the same quarter last year, demonstrating growing customer demand [7] - The company's gross margins slipped to 76% from 81% the previous year, potentially due to higher costs or pressures from launching new products [7] Market Sentiment - Following increased FDA oversight on telehealth drug advertising and a warning letter to Hims & Hers regarding its compounded weight-loss drug, shares dropped, reviving concerns over regulatory risks in the weight-loss space [2] - Despite the selloff, BTIG reaffirmed its "Buy" rating on Hims & Hers with an $85 price target, reflecting some confidence on Wall Street about the company's long-term potential [3] - Hims & Hers has a market value of around $13 billion and annual sales close to $1.48 billion, raising questions about its ability to overcome FDA challenges and maintain rapid growth [3][6] Valuation Metrics - Hims & Hers trades at a forward price-to-earnings (P/E) ratio near 96x earnings, significantly higher than the sector average of 18.36x, indicating that investors expect substantial growth from the company moving forward [6]