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Monday, Leerink Partners maintained a Market Perform rating and a $40.00 price target on Hims & Hers Health, Inc. (NYSE:HIMS) shares. The firm’s analyst highlighted the appointment of Nader Kabbani as the new Chief Operating Officer, praising the decision due to his relevant experience at Amazon (NASDAQ:AMZN).
The analyst from Leerink Partners noted that Kabbani’s previous role overseeing Amazon Pharmacy and leading the acquisition of PillPack aligns with Hims & Hers’ goal to expand as a consumer healthcare company. The analyst acknowledged that Kabbani’s background is well-suited for Hims & Hers’ strategic direction.
Despite the positive view on the new COO hire, Leerink Partners expressed uncertainty about the company’s growth trajectory. The analyst pointed out that while Hims & Hers has experienced strong sales from its semaglutide compounding effort, it is unclear what the next growth driver will be for the company.
Leerink Partners also mentioned the competitive landscape, observing that Amazon Pharmacy has not caused the level of market disruption initially anticipated after acquiring PillPack. This dynamic is seen as a factor in assessing Hims & Hers’ future in the marketplace.
In summary, while the new COO’s hiring is seen as a positive move for Hims & Hers, Leerink Partners remains cautious, reiterating their Market Perform rating and maintaining the existing price target for the company’s stock.
In other recent news, Hims & Hers Health, Inc. has announced the appointment of Nader Kabbani as its new Chief Operations Officer, bringing his extensive experience from Amazon to enhance the company’s operations. This development is seen as a positive step by BofA Securities, though they maintain an Underperform rating for the stock, citing concerns over consumer trends and growth rates. Additionally, Hims & Hers has entered into a partnership with Novo Nordisk (NYSE:NVO) to offer the weight loss drug Wegovy, priced at $599 monthly, which is expected to transition patients from compounded semaglutide to the branded version. Piper Sandler has reiterated a Neutral rating with a $35 price target, noting uncertainties in the weight loss sector despite the new product offering. TD Cowen also maintains a Hold rating with a $30 target, expressing concerns over the competition and affordability of the new pricing model compared to rivals.
BofA Securities increased their price target for Hims & Hers to $26, citing the partnership with Novo Nordisk as a strategy to reduce litigation risks and maintain gross profit neutrality. Despite these strategic moves, Hims & Hers faces stiff competition from companies like Ro, which offers more affordable options and has seen a significant increase in website traffic. The partnership with Novo Nordisk is also expected to validate Hims & Hers’ direct-to-consumer model for future drug partnerships. However, analysts remain cautious, observing that the company’s valuation is higher than the industry average.
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