Growth in Hims & Hers Health is showing no signs of stopping, according to Morgan Stanley. Analyst Craig Hettenbach initiated the telehealth company with an overweight rating and $42 price target. That suggests 53.6% potential upside for the stock, which has already soared a whopping 251% this year on continued enthusiasm over its mental health, weight loss and dermatology treatments. “HIMS is well-positioned to capitalize on growing demand across multiple segments for personalized medication,” the analyst said in a Tuesday note to clients. “Valuation is also attractive, especially on a growth adjusted basis.” Hettenbach called the stock a “compounding machine” that’s consistently able to expand margins, estimating a revenue compound annual growth rate of 30% between 2024 and 2026. Modest GLP-1 subscription increases until 2027 should also extend the company’s growth runway, Hettenbach forecasted. Shares of Hims & Hers soared earlier this year when the company announced that it is introducing access to compounded GLP-1 weight loss injections in an effort to provide customers with a consistent supply of the medications. Hettenbach’s thesis also relies on advantages presented by the experienced board of Hims & Hers Health. He noted that company executives and board members have had senior leadership roles at 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-focused strategy should ultimately help boost subscriptions to the company’s scalable services, the analyst thinks. Subscribers increased 175% year-over-year in the third quarter compared to 44% for the entire business, he noted. “The company has established itself with one of the stronger track records spanning the domains of digital health and DTC and we look for management to build on this success .. Under the guidance of experienced operators, we think the company is at a tipping point in personalization,” Hettenbach said. Analyst sentiment is mixed on the stock. Of the 14 who cover the company, seven rate it as a hold, while another six have a buy rating, LSEG data shows. One other analyst has an underperform rating.