Piper Sandler maintains Neutral on Hims & Hers stock, target at $24

Published 21/02/2025, 19:12
Piper Sandler maintains Neutral on Hims & Hers stock, target at $24

On Friday, Piper Sandler reiterated a Neutral rating on Hims & Hers Health, Inc. (NYSE:HIMS) with a steady price target of $24.00. The firm’s stance comes in response to the FDA’s announcement that Semaglutide, a medication for which Hims & Hers offers a compounded version, is no longer in shortage. Piper Sandler estimates that the company may have a few months left to sell their version and manage existing inventory.

The firm acknowledges that Hims & Hers’ personalized offerings and foray into Liraglutide may provide some buffer against market uncertainties. However, the analysts noted that shares of Hims & Hers were declining, yet remained at levels that seem high compared to the company’s fundamental value. Additionally, they pointed out the high short interest in the stock, which could lead to volatile price movements.

Piper Sandler plans to reassess their financial model for Hims & Hers following the release of the company’s fourth-quarter earnings on Monday. This review will take into consideration the latest developments and the potential impact on the company’s financial performance.

The FDA’s update has implications for Hims & Hers’ product offerings, potentially affecting the company’s sales strategy in the near term. The firm’s analysts will be closely monitoring the situation to determine any necessary adjustments to their outlook on the stock.

Investors and stakeholders are now looking ahead to the upcoming earnings report, which will provide further insights into the company’s financial health and how it may navigate the changing landscape with Semaglutide’s availability.

In other recent news, Hims & Hers Health, Inc. has been navigating several significant developments. The company reported a 104% year-over-year increase in online sales for January, driven by a rise in the contribution of GLP-1 drugs to its sales, according to Bloomberg Second Measure data. This growth has prompted BofA Securities to raise its price target for the company to $21, although they maintain an Underperform rating. Meanwhile, the U.S. Food and Drug Administration (FDA) announced the end of a drug shortage, impacting the availability of compounded versions of key medications offered by Hims & Hers, posing challenges to its business model.

Additionally, Hims & Hers has acquired a peptide manufacturing facility in California to enhance its domestic supply chain and a lab testing facility, Trybe Labs, to expand its at-home testing capabilities. These acquisitions aim to bolster personalized healthcare options for customers. Canaccord Genuity responded positively to these strategic moves, raising its price target for Hims & Hers to $68 and maintaining a Buy rating. These developments underscore the dynamic changes and challenges faced by Hims & Hers in the evolving healthcare landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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