BofA maintains HIMS stock Underperform rating and $26 target

Published 05/05/2025, 15:44
BofA maintains HIMS stock Underperform rating and $26 target

On Monday, BofA Securities maintained its Underperform rating on Hims & Hers Health, Inc. (NYSE:HIMS) while keeping the price target unchanged at $26.00. The firm’s assessment follows the announcement of a new executive hire at Hims & Hers, which BofA Securities views as a positive development for the company.

The newly appointed executive, Nader Kabbani, brings a wealth of experience from his previous role as VP of Operations at PillPack & Amazon (NASDAQ:AMZN) Pharmacy, where he served from January 2019 until March 2022. Kabbani’s tenure at Amazon Pharmacy followed the e-commerce giant’s acquisition of PillPack in June 2018, which was a strategic move to enhance Amazon’s online pharmacy capabilities.

BofA Securities believes that Kabbani’s extensive background in logistics and pharmacy operations will be beneficial to Hims & Hers. His expertise is expected to contribute valuable insights into the online pharmacy sector and provide best practices for expanding a pharmacy business. In particular, Kabbani’s experience may help Hims & Hers navigate the complexities of the pharmacy landscape, such as integrating physician visits with pharmacy delivery, understanding pharmacy benefit managers (PBMs), and pricing strategies.

Despite the optimistic view on the executive hire, BofA Securities has decided to maintain its Underperform rating for Hims & Hers stock. The decision is influenced by concerns over weakening consumer trends and the company’s growth rates as of the end of March. The firm’s stance remains cautious in light of these challenges facing Hims & Hers.

In other recent news, Hims & Hers Health, Inc. has announced the appointment of Nader Kabbani, a former Amazon executive, as its new Chief Operations Officer. This move is expected to enhance the company’s operations as it expands its personalized healthcare services. In terms of financial analysis, Piper Sandler has maintained a Neutral rating for Hims & Hers with a price target of $35, citing uncertainties in the weight loss sector despite the introduction of a bundled product offering with Novo Nordisk (NYSE:NVO)’s Wegovy. Similarly, TD Cowen has upheld its Hold rating with a $30 target, noting the strategic significance of the partnership with Novo amid growing competition and potential economic challenges.

BofA Securities has increased its price target for Hims & Hers to $26 from $22, while maintaining an Underperform rating. The revision comes after the partnership with Novo Nordisk, which is expected to reduce litigation risks and maintain gross profit margins. Morgan Stanley (NYSE:MS) reaffirmed an Equalweight rating with a $40 price target, highlighting the partnership with NovoCare® Pharmacy as a strategic move to mitigate legal risks and enhance the platform’s offerings. The market is keenly awaiting further details on these developments during Hims & Hers’ upcoming earnings report.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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