Powell’s speech, Nvidia’s chips, Meta deal - what’s moving markets
On Tuesday, Piper Sandler confirmed its Neutral rating on Hims & Hers Health, Inc. (NYSE:HIMS) with a steady price target of $35.00. The decision follows the health and wellness company’s introduction of a bundled product offering that includes Novo Nordisk (NYSE:NVO)’s weight management drug, Wegovy.
Korinne Wolfmeyer of Piper Sandler expressed a cautious stance towards Hims & Hers, citing the uncertainties present in the weight loss sector for the year 2025. Despite this, the analyst acknowledged the recent announcement as a positive indicator of the company’s ability to meet or surpass their previous goals for the weight loss platform.
Wolfmeyer noted that even with the potential for increased sales from the new Wegovy offering, the current share price movement does not suggest significant growth prospects. The analyst also pointed out the high short interest in the stock, which further contributes to her reluctance to adopt a more optimistic outlook.
The firm’s position is expected to be reviewed after more information is provided by Hims & Hers management in the upcoming earnings report on Monday evening. Piper Sandler’s reiteration of the Neutral rating and $35 price target indicates a watchful approach as they await further details that could influence the company’s valuation.
In other recent news, Hims & Hers Health Inc. has announced a partnership with Novo Nordisk, enabling the company to offer Wegovy, a weight loss drug, through its platform. This collaboration includes comprehensive health services such as 24/7 care, clinical support, and nutrition guidance, starting at $599 per month. Analysts have provided varied perspectives on this development. TD Cowen maintained a "Hold" rating with a $30 target, expressing concerns about the high price point compared to competitors. BofA Securities increased their price target to $26 but retained an Underperform rating, citing weakening consumer trends. Morgan Stanley (NYSE:MS) reaffirmed an Equalweight rating with a $40 target, noting the partnership mitigates litigation risks and strengthens Hims & Hers’ platform. Citi maintained a Sell rating with a $25 target, highlighting that the partnership could help Hims & Hers reach its revenue target for 2025. The collaboration is expected to enhance long-term health outcomes while addressing obesity care affordability.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.