BofA warns Fed risks policy mistake with early rate cuts
On Tuesday, Leerink Partners maintained their Market Perform rating on Hims & Hers Health, Inc. (NYSE:HIMS) shares, with a steady price target of $40.00. The firm’s analyst highlighted the recent addition of two products to the company’s weight loss offerings: Eli Lilly (NYSE:LLY)’s Zepbound and a generic version of liraglutide. Zepbound’s inclusion, which was not anticipated, alongside the expected generic liraglutide, is seen as a move to expand Hims & Hers’ customer base.
The analyst noted that while the broader range of weight loss products is positive, Zepbound comes with a high monthly cost of $1,899. This price point could influence customer demand, particularly as Zepbound becomes more widely available through various online prescription channels. Leerink Partners has adopted a cautious approach, opting to observe the market’s reception to the product when sold via Hims & Hers.
Leerink’s commentary emphasized the need to assess the long-term growth trajectory of the company’s weight loss segment. While the new product additions are promising, the overall valuation of Hims & Hers’ core business is deemed to be fair at the current levels. The firm’s position remains unchanged as it awaits further evidence of the company’s performance in the competitive weight loss market.
Hims & Hers Health, Inc. has been working to position itself in the growing telehealth and wellness industry, providing a range of products and services aimed at a variety of health concerns. The company’s strategy includes leveraging online channels to reach consumers seeking convenient and discreet health solutions.
The stock market and investors will likely continue to monitor Hims & Hers’ progress in expanding its product offerings and capturing market share within the expanding digital health space. As new products like Zepbound enter the market, the company’s ability to attract and retain customers will be a key factor in its ongoing financial performance and stock valuation.
In other recent news, Hims & Hers Health has announced its plan to sell Eli Lilly’s diabetes and weight-loss drug Zepbound on its telehealth platform, marking a significant expansion in its pharmaceutical offerings. Despite the positive market reaction, BofA Securities maintained an Underperform rating on the company, with a price target of $22.00. The analyst firm highlighted that while the addition of Zepbound and generic liraglutide offers more treatment options, it is not expected to significantly impact sales due to lower margins on branded drugs. February sales data from Bloomberg Second Measure indicated that GLP-1 sales growth is accelerating, with a 124% year-over-year increase, suggesting potential upside to Street estimates. However, BofA Securities also noted a potential deceleration in core growth, emphasizing the execution risk associated with the sales model’s reliance on semaglutide, which accounts for nearly half of the company’s sales. The first-quarter online revenue for 2025 is projected to range between $594 million and $622 million, exceeding the Visible Alpha consensus of $523.9 million. This projection represents a significant year-over-year growth of 122% to 132%, although the company’s guidance anticipates a more modest growth excluding weight loss products. As the company continues to expand its product range, market observers will be watching for the impact of these developments on Hims & Hers Health’s financial performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.