Bank of America just raised its EUR/USD forecast
Investing.com - Citi maintained its Sell rating and $30.00 price target on Hims and Hers (NYSE:HIMS), currently valued at $11.07 billion, following the company’s announcement of plans to expand its weight loss program into Canada next year. According to InvestingPro data, the company has demonstrated strong growth with revenue surging 86% in the last twelve months.
The expansion comes shortly after Hims and Hers acquired Zava and represents a furthering of the company’s international growth strategy. The Canadian launch is timed to coincide with the introduction of generic semaglutide in the Canadian market. While trading at a relatively high P/E ratio of 66, InvestingPro analysis shows the company maintains a strong financial health score, suggesting solid operational execution.
The program will provide Canadian subscribers with access to licensed providers and personalized care plans. Citi notes that branded semaglutide is already relatively affordable in Canada at approximately C$200 per month, with generic versions expected to be significantly cheaper.
Unlike the U.S. market, Citi believes there is less pricing arbitrage opportunity in Canada. Instead, the firm expects Hims and Hers will leverage its marketing capabilities to attract Canadians seeking convenient access to generic semaglutide.
Pricing for the Canadian program has not yet been announced, though Citi points out that Zava’s weight loss pricing in the UK currently ranges between C$47 for orlistat and C$261 for Liraglutide per month.
In other recent news, Hims and Hers plans to expand its digital weight loss program to Canada in 2026, aligning with the expected availability of generic semaglutide in the market. This move follows the company’s acquisition of ZAVA and aims to offer lower-cost alternatives to branded GLP-1 medications. Truist Securities reiterated its Hold rating and $45.00 price target on Hims and Hers, citing recent price increases for compounded semaglutide subscriptions. The firm noted uncertainty regarding the removal of the one-month subscription option and speculated on strategic pricing actions. Meanwhile, Morgan Stanley (NYSE:MS) maintained its Equalweight rating and $40.00 price target, highlighting ongoing legal challenges related to compounded GLP-1 medications. Legal experts consulted by Morgan Stanley suggest that these cases could take years to resolve, impacting Hims and Hers’ business operations. Additionally, Truist Securities analyzed Hims and Hers’ revenue projections, estimating second-quarter 2025 revenues to fall between $543-$550 million, slightly below consensus estimates. The firm expressed caution about the company’s ability to meet its full-year 2025 revenue guidance without significant contributions from recent or upcoming acquisitions.
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