Leerink Partners analyst Michael Cherny maintained a Hold rating on Hims & Hers Health (HIMS – Research Report) on April 29 and set a price target of $40.00.
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Michael Cherny has given his Hold rating due to a combination of factors surrounding Hims & Hers Health’s recent strategic developments. The newly announced partnership with Novo Nordisk represents a significant validation of HIMS’s business model, particularly in the weight management sector. This collaboration marks a shift towards a brand sales effort, which could potentially streamline operations by reducing friction with existing manufacturers.
However, despite this positive development, there are still uncertainties regarding the financial implications of this partnership, especially concerning unit economics. The upcoming earnings results are expected to provide further clarity on these financial expectations. Given the current growth trajectory and the high level of skepticism and short interest in the stock, Cherny maintains a cautious stance with a Hold rating, acknowledging both the potential and the risks involved.
In another report released on April 29, TD Cowen also downgraded the stock to a Hold with a $30.00 price target.
HIMS’s price has also changed dramatically for the past six months – from $22.240 to $35.040, which is a 57.55% increase.