The stock of specialty telemedicine company Hims & Hers (HIMS -2.55%) took a big hit on Monday, cratering by 10.8%. It seems an analyst's modest price chop led to the investor sell-off.
Early that morning, Credit Suisse prognosticator Jailendra Singh updated his price target on the stock, lowering it from $16 per share to $14. While doing so, however, he maintained his outperform (i.e., buy) recommendation.
That's still a very bullish outlook on Hims & Hers' potential. Even though it's been reduced, that price target is still nearly double the stock's current level.
Singh's slight revision comes two working days after Hims & Hers delivered impressive Q2 results with convincing beats on both the top and bottom lines, powered by revenue that increased nearly 70% on a year-over-year basis. The healthcare services company's 2021 revenue guidance was also well above expectations.
The Credit Suisse analyst isn't alone in becoming more cautious about the stock. In the wake of Thursday's earnings release, Piper Sandler's Sean Wieland also trimmed his price target on the shares, from $11 to $10, while keeping his neutral recommendation. He believes that while that guidance is realistic, he is concerned about the viability of Hims and Hers' strategy for international expansion.
Neither analysis is sounding serious alarm bells about the future of Hims & Hers, rather they are fairly minor adjustments to existing views. So this sell-off feels a bit melodramatic, and could therefore provide an opportunity for optimists to jump on the Hims & Hers train.