In a decisive move, Barclays has initiated coverage of Hims & Hers Health with an Overweight rating, setting a price target of $48 per share. This projection implies an upside potential exceeding 20% from current trading levels. The timing of this optimistic call is notable, as the company’s shares have shed nearly half their value since reaching a peak in February.
A Contrarian Stance Against Market Skepticism
The British financial institution’s analysis points to a fundamental turnaround. Barclays strategists believe the most significant concerns regarding the long-term viability of the digital health provider’s business model have now been addressed. They argue the digital healthcare services market continues to offer substantial growth potential and that investor expectations have finally realigned with the company’s core fundamentals.
This stance represents a clear challenge to the prevailing market sentiment. While the average analyst price target sits between $45.50 and $47.57, Barclays has adopted a more aggressive position. For context, Truist Financial reaffirmed its Hold rating on the stock on the same day.
Strategic Moves Amidst a Heavily Shorted Stock
Alongside this analyst debate, Hims & Hers is actively executing its growth strategy. The company expanded into the Canadian market in December 2025 through the acquisition of the Livewell platform. Furthermore, its board has authorized a share repurchase program worth $250 million, effective through 2028.
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These corporate actions demonstrate proactive management but are unfolding in a skeptical trading environment. The current short interest stands at between 30% and 36% of the free float—an unusually high level that signals significant doubt among professional investors.
Navigating Extreme Volatility
The equity has been characterized by extreme price swings. Following its 52-week high in February, the stock plummeted by almost 50%. Although it has recovered significantly from an April low of $22.21, it continues to trade approximately 15% below its 200-day moving average.
The current situation presents a unique confluence of factors: a major bullish analyst endorsement, concrete strategic expansion, and a substantial short position. Forthcoming quarterly results will likely determine whether Barclays’ optimistic outlook is justified or if the short sellers’ skepticism will prevail.
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