BofA Securities maintains Hims and Hers stock rating at Underperform

Investing.com - BofA Securities has reiterated its Underperform rating and $28.00 price target on Hims and Hers (NYSE:HIMS), citing mixed catalyst paths for the telehealth company. According to InvestingPro data, HIMS currently trades at significant premiums across multiple valuation metrics, with the stock showing strong momentum, gaining over 145% in the past year.

The firm notes a higher probability for litigation as HIMS continues to sell compounded GLP-1s at scale under the 503A personalization exemption, while deteriorating core growth puts pressure on the company’s full-year guidance. Despite these concerns, InvestingPro analysis shows the company maintains robust financial health with an impressive 86% revenue growth in the last twelve months and a strong gross profit margin of 77%.

BofA Securities estimates that GLP-1 sales grew approximately 35% month-over-month in June when adjusted for days, with the average order value increasing 11% month-over-month, while core sales declined about 4% month-over-month on an adjusted basis.

The research firm acknowledges positive developments including new product releases (TRT) and geographic expansion through the ZAVA deal and entry into Canada, which should improve growth trajectory in 2026 but are unlikely to aid growth in 2025.

BofA Securities observes that HIMS has strategically increased marketing for GLP-1s, translating into higher GLP-1 contributions with a majority of incremental sales likely driven by compounded GLP-1s.

In other recent news, Hims & Hers has been at the center of several developments. The company’s partnership with Novo Nordisk (NYSE:NVO) was terminated in June 2025, following disagreements over the sale of compounded semaglutide alongside Wegovy. Novo Nordisk accused Hims of illegal sales and deceptive marketing, claims that Hims has denied. Despite this, Hims & Hers continues to offer Wegovy at retail price on its platform. In a separate move, Hims & Hers announced plans to expand its weight loss program into Canada by 2026, aiming to offer generic semaglutide where Novo Nordisk’s patent protection has ended. This expansion aligns with their strategy to grow internationally, following the acquisition of Zava. Morgan Stanley (NYSE:MS) has maintained its Equalweight rating on the company, while Citi has reiterated a Sell rating, citing the Canadian market’s pricing dynamics. Additionally, Leerink Partners has maintained a Market Perform rating, noting the potential for incremental revenue from the Canadian expansion.

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