Allen Lutz, an analyst from Bank of America Securities, maintained the Sell rating on Hims & Hers Health (HIMS – Research Report). The associated price target was raised to $26.00.
Allen Lutz has given his Sell rating due to a combination of factors impacting Hims & Hers Health. Despite the recent partnership with Novo Nordisk, which could potentially mitigate litigation risks and maintain gross profit neutrality, there are underlying concerns. The bundled offering of Wegovy at a higher price than Novo’s direct-to-consumer option raises questions about its competitiveness.
Additionally, while the collaboration validates HIMS’ direct-to-consumer model and extends its potential for broader drug partnerships, the overall consumer trends and growth rates have shown signs of weakening. This has led to a cautious outlook, reflected in the price objective being set below the current market price. Consequently, despite the strategic moves, the Sell rating is maintained due to these broader market concerns.
In another report released yesterday, Citi also reiterated a Sell rating on the stock with a $25.00 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.