Citigroup downgrades Hims & Hers Health to Neutral from Buy

Citigroup has downgraded Hims & Hers Health (HIMS) to Neutral from Buy and raised its price target to $20 from $16.

Yahoo Finance's Julie Hyman and Josh Lipton explain how this move is affecting the company's stock valuation.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Melanie Riehl

Video transcript

Um And then we got him and her to talk about also hims and hers being downgraded over at Citigroup to neutral from buy.

But the analysts are also raising their price circuit from $16 to $20.

The stock is down 7%.

I have to say this is one of the more effusive downgrades that I have seen here because the analyst, they still like him and her over the long term.

They talk about that the recent announcement that the company is going to be selling GLP ones through their site.

And, they say, assuming an average monthly average selling price of $230 a month, this equates to an almost comically large $30 billion revenue opportunity.

I love that, but the stock has rallied a lot, so that's basically why they're saying, Take a pause.

That's it.

After the announcement, they say, Listen, the stock jumped 20% added, about 760 million of enterprise value leaves little room for upside.

In their opinion, they say, given the significant uncertainties around the economics and durability of GOP ones, we are moving to the sidelines, Indeed, and so are other investors today to some extent well, coming up.

We'll bring you down the best ways to