BofA Reiterates Underperform on Hims & Hers, Lowers Revenue Estimates on Weak Demand

Core Viewpoint - BofA Securities maintains an Underperform rating and a $28 price target on Hims & Hers Health Inc., indicating concerns over weaker growth trends as the company approaches the fourth quarter [1]. Revenue Estimates - BofA has revised its fourth-quarter revenue estimate from $617 million to $590 million, which is 6.5% below the Street's consensus of $632 million [3]. - The full-year revenue estimate has also been reduced to $2.298 billion, falling short of the company's guidance range of $2.3 billion to $2.4 billion [3]. Sales Performance - The updated model from BofA incorporates September sales data, projecting third-quarter revenue to be roughly in line with Street expectations, but notes that deferred revenue is expected to have a larger impact than in previous quarters [2]. - Orders in September were reported to be down 16% year-over-year, contributing to a weak outlook for the fourth quarter [2]. Market Conditions - BofA suggests that consensus estimates are overly optimistic, reflecting an unrealistic expectation for growth acceleration from the third to the fourth quarter [4]. - The firm identifies several headwinds affecting the company, including decelerating core growth, slowing order momentum, seasonal weakness in GLP-1 sales, increasing competition, and changes in direct-to-consumer advertising that may pressure conversion rates [4].