Hims & Hers Stock Pushes to Highs on Healthcare Rate Cut Frenzy

Key Points

• Hims & Hers Health posted 73% YOY revenue growth in Q2 2025 and added 31% more subscribers, reaching 2.4 million.
• The company’s subscription model, growing customer spend, and platform stickiness justify its high price-to-book ratio.
• Despite a $38.92 consensus target, Canaccord sees the stock reaching $68, citing continued growth momentum.

The financial market is a machine powered by shifting opinions, and when the Federal Reserve announced its latest interest rate cut, those opinions pushed capital into healthcare and financial stocks.

This kind of sector rotation signals where investors see resilience—and opportunity.

One name that sits at the intersection of healthcare and tech is Hims & Hers Health Inc. NYSE: HIMS.

It’s a polarizing stock in 2025: some see it as overhyped due to its exposure to GLP-1 weight loss treatments, while others believe it’s just getting started.

With strong quarterly results and bullish analyst coverage, investors may want to reassess where HIMS stands—and where it might be headed.

Growth That’s Hard to Ignore

When the Health Care Select Sector SPDR Fund NYSEARCA: XLV rose nearly 1% on the day of the Fed cut, it hinted at a flight to stability. That’s also when Hims & Hers started showing its hand.

In its latest Q2 2025 earnings, the company reported $544.8 million in revenue, a 73% increase compared to the previous year. Most importantly, net subscribers hit 2.4 million, a 31% increase from the previous year. For a subscription-based platform, that kind of growth isn't just appealing, it's crucial.

Average revenue per user grew from $57 in 2024 to $74 in 2025, a 30% rise, indicating better retention and deeper spending, which enhances revenue and valuation.

And premium it is. Hims & Hers trades at a price-to-book (P/B) ratio of 25.9x, well above the medical sector average of 13.6x. That kind of valuation usually holds up only when the market thinks growth is both real and sustainable.

Canaccord's $68 Target Highlights Bullish Analyst Sentiment

Despite HIMS trading below its 52-week high, Wall Street remains split. The consensus price target is $38.92, which implies about 33% downside from recent prices. That consensus likely reflects a cautious view based on stock volatility rather than fundamentals.

But not all analysts agree.

Maria Ripps of Canaccord Genuity recently reiterated a Buy rating and placed a $68 price target on the stock. That implies a potential 17% upside from current levels—and puts HIMS within striking distance of its 52-week high of just under $73.

Given the company's recent 32.9% stock surge, this target doesn’t look far-fetched. The rally appears driven by strong earnings and investor optimism about lower interest rates fueling future reinvestment and expansion.

Positioning Before the Market Catches On

If Ripps is right, and if more analysts follow suit, the current price could represent a window of opportunity. Hims & Hers is operating in a market sweet spot: recurring revenue, growing customer base, increasing per-user spend, and a platform model that scales.

Those bullish on the broader telehealth and digital care space should also consider how HIMS stacks up against its competitors.

Although the risks, both regulatory and operational, are substantial, the company’s solid fundamentals and market momentum justify the valuation.

Hims & Hers Health: Strong Q2 Results Validate Growth Strategy

Hims & Hers Health is no longer just a speculative play. With strong subscriber growth, improving margins, and a business model designed for scale, it's starting to earn its valuation premium.

If you’re waiting for proof of concept, Q2 might have just delivered it. And if analyst sentiment shifts in line with Canaccord’s $68 call, this stock may have more room to run.