$HIMS (+0.52%) Interesting analysis at Seeking Alpha... HOLD THE LINE!
https://seekingalpha.com/article/4724740-hims-hers-shortage-saga-stupendous-risk-reward
Summary/translation (ChatGPT) of the complete article:
Summary of Hims & Hers Investment Analysis
Hims & Hers Health, Inc (HIMS) represents a compelling investment opportunity despite concerns about marketing spend and a lack of GLP1 products. Here are the key points:
In summary, despite potential challenges, Hims & Hers' solid financial fundamentals and robust growth prospects make it an attractive investment.
- Valuation: The stock is considered undervalued at 25 times projected free cash flow and has significant growth potential and strong fundamentals.
- Financial health: Hims & Hers has more than 2 million paying subscribers, no debt and more than USD 230m in cash. EBITDA of USD 220 million and free cash flow of USD 170 million are expected for 2025.
- Growth potentialRevenue growth rates are expected to reach a CAGR of 35% in 2025, mainly driven by organic growth rather than GLP1 products.
- Market reaction: Recent FDA updates indicate that GLP1 products are no longer in short supply, which may impact pricing but will not diminish the underlying demand for Hims & Hers' services.
- Long-term outlookInvestors should focus on long-term fundamentals rather than short-term volatility. The analysis suggests that HIMS could reach a value of $30 per share by the summer of 2025.