Hims & Hers Health (HIMS +0.26%) is a digital health platform offering personalized care and treatments across areas such as weight loss, sexual health, hair loss, and hormonal health. Shares of the company have been volatile so far in 2026.
But I think the stock could climb 55.7% from its Sept. 10 closing price of $27.47 by the end of 2026. Here's why.
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Hims has upside potential
Wall Street expects Hims & Hers Health to generate about $3.99 billion in revenue in 2027, compared with $3.21 billion expected in 2026. The company's market capitalization was $6.4 billion on Sept. 10, with 233 million shares outstanding. That sets the valuation at 2x expected 2026 sales.
NYSE: HIMS
Key Data Points
Suppose improving growth and profitability allow investors to value the company at 2.5x expected 2027 sales. Applying that multiple to the $3.99 billion revenue estimate produces a market capitalization of $10 billion, or about $42.76 per share. That's an upside of 55.7%.
There is operating momentum to support such a valuation rerating. The company's revenue rose 38% year over year to $753 million in Q2 (ending June 30, 2026). Subscribers also increased 19% to roughly 2.9 million, while monthly revenue per average subscriber climbed 21% year over year to $92. Hence, Hims & Hers Health is growing both its customer base and revenue generated per subscriber.
Margin risk
The growth is not as clean as those numbers suggest. U.S. revenue grew only 16% year over year in Q2, while international growth was boosted by acquisitions. Gross margin also fell by 12 percentage points year over year to 64%, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) declined 26.7% to $60.3 million.
Hence, the company does not need dramatic multiple expansion to reach my target price. However, investors need evidence that its lower-margin weight-loss and international businesses can generate stronger profits as they scale.
If revenue estimates hold and margins begin stabilizing, I think the 53% upside is achievable. But if margins keep deteriorating, even strong sales growth may not be enough.
