Hims & Hers Health Inc. (NYSE:HIMS) shares are up during Thursday’s premarket session as the company is accelerating its vision to become a leading global consumer health platform.
The positive movement follows the announcement of a definitive agreement to acquire Eucalyptus, a digital health leader, which is expected to enhance Hims & Hers’ international presence.
Hims & Hers agreed to acquire Eucalyptus, which operates in multiple countries, including Australia, the U.K., and Germany.
The deal is structured to maintain financial flexibility, with the company planning to finance most of the transaction using existing cash and future operating cash flows.
Deal Consideration
The transaction is valued at up to $1.15 billion. Approximately $240 million will be payable in cash upon closing of the acquisition.
The remaining consideration consists of guaranteed deferred payments over the 18 months following closing, and additional earnout payments tied to the attainment of specified financial targets through early 2029.
The acquisition is anticipated to close in mid-2026, allowing Hims & Hers to expand its reach into new markets such as Japan and Canada. This move is part of the company’s strategy to leverage local expertise and enhance its service offerings globally, aiming to provide personalized healthcare solutions.
Eucalyptus Financials
Eucalyptus currently has an annual revenue run-rate (ARR) north of $450 million, and is delivering triple-digit year-over-year ARR growth in each quarter of calendar year 2025, while operating within line of sight of profitability.
Why It Matters?
With a strong domestic margin profile, Hims & Hers expects its continued international growth efforts to help drive category leadership in key markets such as Canada, Europe, and Australia, as well as in emerging markets such as Japan.
Hims & Hers believes that the acquisition of Eucalyptus will result in category leadership within Australia, as well as bring line of sight to establishing Hims & Hers as a leading telehealth provider in the U.K. and Germany in the next two years.
Earlier in February, Hims & Hers Health stock took a hit when Novo Nordisk A/S (NYSE:NVO) filed a lawsuit.
Technical Analysis
The stock is currently trading 31.1% below its 20-day simple moving average (SMA) and 57.4% below its 100-day SMA, suggesting a bearish trend in the short to medium term. Over the past 12 months, shares have decreased by 76.96%, and they are currently positioned closer to their 52-week lows than highs.
The RSI is at 16.67, indicating that the stock is in oversold territory, which could suggest a potential rebound if buying interest increases. Meanwhile, the MACD shows a value of -4.4398, with the signal line at -3.7562, indicating bearish momentum as the MACD remains below the signal line.
The combination of an oversold RSI and bearish MACD suggests mixed momentum, indicating that while the stock is oversold, the bearish trend is still in play.
- Key Resistance: $22.50
- Key Support: $15.50
Hims & Hers Health is set to report earnings on February 23.
- EPS Estimate: 3 cents (Down from 11 cents)
- Revenue Estimate: $619.08 million (Up from $481.14 million)
- Valuation: P/E of 29.9x (Indicates premium valuation)
Analyst Consensus & Recent Actions: The stock carries a Hold Rating with an average price target of $35.89. Recent analyst moves include:
- TD Cowen: Hold (Lowers Target to $20.00) (February 9)
- Citigroup: Sell (Lowers Target to $16.50) (February 9)
- B of A Securities: Underperform (Lowers Target to $21.00) (February 9)
HIMS Price Action: Hims & Hers Health shares were up 3.09% at $16.33 during premarket trading on Thursday, according to Benzinga Pro data.
Photo: Lori Butcher via Shutterstock
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