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On Tuesday, Morgan Stanley (NYSE:MS) reaffirmed its Equalweight rating and a $40.00 price target for Hims & Hers Health, Inc. (NYSE: HIMS). The financial institution’s analysts highlighted the recent development that has addressed one of the primary concerns investors had regarding potential legal action from Novo Nordisk (NYSE:NVO), which has now been circumvented through a partnership.
The collaboration with NovoCare® Pharmacy enables direct access through the Hims & Hers platform, offering a comprehensive package that includes Wegovy® in all dosages and a Hims & Hers membership. This membership provides 24/7 care, ongoing clinical support, and nutrition guidance. The service, which began this week, is priced starting at $599 per month.
The strategic partnership not only mitigates the risk of litigation but also underscores the strength of the Hims & Hers platform and its growing consumer base. The companies are working together on a roadmap to merge Novo Nordisk’s innovative treatments with the scalable quality care provided by Hims & Hers, with the goal of enhancing long-term health outcomes affordably.
The market will be looking forward to additional details on this partnership and the expansion of the Hims weight loss offering during the company’s first-quarter earnings call on the following Monday. With analyst price targets ranging from $22 to $85, investors seeking deeper insights can access comprehensive analysis through InvestingPro’s detailed research reports, which include 14 additional ProTips and extensive financial metrics. Observers are also anticipating insights into the company’s app download and web traffic momentum ahead of the Q1’25 earnings report, with current InvestingPro data showing the company maintains positive earnings of $0.58 per share.
In other recent news, Hims & Hers Health, Inc. announced a collaboration with Novo Nordisk to enhance obesity care by offering a bundled package of Novo Nordisk’s Wegovy® on their platform. This service, priced at $599 per month, combines pharmaceutical therapy with clinical support and nutrition guidance. Meanwhile, Citi analyst Daniel Grosslight maintained a Sell rating on Hims & Hers, lowering the stock price target to $25 from $27. Grosslight anticipates the company will exceed earnings estimates due to the strong performance of GLP-1 products, although he expects a slowdown in core revenue growth.
Additionally, the FDA issued a warning letter to Hims & Hers regarding their compounded topical finasteride products for hair loss treatment, citing safety concerns. Despite the warning, the products can still be sold, but the alert raises questions about their future market presence. BofA Securities analyst Allen Lutz maintained an Underperform rating with a $22 price objective, highlighting potential challenges for the company if patients shift to oral alternatives. In leadership news, Hims & Hers announced that COO Melissa Baird will transition into an advisory role, with the company seeking her successor. This transition was disclosed in an 8-K filing, indicating a strategic shift in the company’s executive team.
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