What happened
Inexpensive stocks have a way of jumping after they get a healthy dose of good news. That was the case with niche healthcare company Hims & Hers Health's (HIMS 1.87%) shares on Thursday, which received a blast of bullishness with a significant analyst upgrade. As a result, according to data from S&P Global Market Intelligence, the stock shot nearly 22% higher over the course of this week.
So what
The man behind the upgrade was Jefferies prognosticator Glen Santangelo, who lifted his recommendation from hold to buy. He also raised his price target on Hims & Hers substantially; it is now $11 per share, well up from the preceding $7.
Santangelo's new take is based heavily on the success of the specialty healthcare company's consumer-facing mobile app. Data shows that downloads of the app, and traffic on it, are continuing to grow and have led to encouraging gains in subscription revenue for Hims & Hers.
The company competes in the drugs and personal care segments, both challenging even for seasoned businesses. In his latest research note, Santangelo wrote, "We find it encouraging that Hims and Hers seem to be gaining share relative to competitors which speaks to the impressive brand awareness and ongoing leadership in the sector."
Now what
We'll get a clearer picture of how Hims & Hers has been doing when the company unveils its latest set of quarterly earnings. It's slated to publish fourth-quarter and full-year 2022 results after market hours on the last Monday of this month, Feb. 27.
