Hims & Hers price target raised to $26 from $22 at BofA

BofA raised the firm’s price target on Hims & Hers (HIMS) to $26 from $22 and keeps an Underperform rating on the shares after the company and Novo Nordisk (NVO) announced a long-term collaboration. As a first step, Hims will offer Wegovy auto-injector pens, the branded version of semaglutide, for obesity at a unified price of $599 per month for all dose strengths, notes the analyst, who thinks the partnership can be “mutually beneficial.” While today’s partnership creates a clear incentive for Hims to shift patients from its own compounded version of semaglutide to Novo Nordisk’s Wegovy, and also provides further validation of Hims’ direct-to-consumer model as a platform for broader drug partnerships, the firm reiterates an Underperform rating given weakening consumer trends and growth rates exiting March while acknowledging the “positive steps” the company is taking.