The growth of Hims & Hers Health shows no signs of stopping, according to Morgan Stanley. Analyst Craig Hettenbach pegged the telehealth company with a bullish rating and a $42 price target. That suggests a potential upside of 53.6% in the stock, which has risen 251% this year on continued enthusiasm for its mental health, weight loss and skin treatments. “HIMS is well-positioned to take advantage of growing demand in many segments of personalized medicine,” the analyst said in a Tuesday note to clients. “Validation is also attractive, especially when compared to growth.” Hettenbach called the stock a “combining machine” capable of continuously expanding margins, estimating a compound annual revenue growth rate of 30% between 2024 and 2026. A modest GLP-1 subscription increase through 2027 should also extend the company’s growing runway, Hettenbach predicted. Shares of Hims & Hers soared earlier this year when the company announced it was introducing access to GLP-1 compounded weight loss injections in an effort to provide customers with a more consistent regimen. Hettenbach’s thesis also depends on the programs presented by the Hims & Hers Health expert board. He noted that company executives and board members have held senior leadership roles in successful digital platforms such as Uber, Netflix and DoorDash, as well as in major drug companies such as Novo Nordisk and Pfizer. Management’s growth-oriented strategy should ultimately help boost subscriptions to the company’s scalable services, the analyst thinks. Subscribers were up 175% year-over-year in the third quarter compared to 44% for the rest of the business, he noted. “This company has established itself with a strong track record covering the domains of digital health and DTC and we are looking for management to build on this success .. Under the guidance of an experienced staff, we think the company is at a high level for personalization,” Hettenbach said. Analyst sentiment is mixed on the stock. Of the 14 covering the company, seven rate it a hold, while another six have a buy rating, LSEG data shows. Another analyst has a lower-than-expected rating.