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On Wednesday, Truist Securities maintained a Hold rating on Hims & Hers Health, Inc. (NYSE:HIMS) stock with a steady price target of $39.00. The company’s shares experienced volatility during the trading day, surging as much as 13.6% but ultimately closing with a 5.1% increase compared to the S&P 500’s modest 0.4% rise.
The fluctuation in Hims & Hers stock value followed the company’s announcement of expanding its weight-loss product range to include generic Liraglutide and branded Tirzepatide. Truist Securities noted that the initial sharp rise in the stock price was likely due to some investors mistakenly believing the Tirzepatide launch indicated a direct partnership with pharmaceutical giant Eli Lilly (NYSE:LLY), which the firm clarified is not the case.
Truist Securities views the expansion into weight-loss treatments as a positive development for Hims & Hers, though they do not anticipate the branded Tirzepatide to contribute significantly to the company’s revenue. Instead, it is expected to serve as an additional marketing tool to attract more users to the Hims & Hers platform.
The analysts had previously forecasted that the contribution from the launch of Liraglutide would begin in the third quarter of 2025. This new offering is now expected to enhance the company’s product lineup sooner than initially projected.
In summary, while Truist Securities acknowledges the potential benefits of the new weight-loss offerings, they maintain their Hold rating on Hims & Hers stock, suggesting a watchful approach to the company’s performance in the market. The price target remains unchanged at $39.00, indicating the firm’s steady outlook on the stock’s value.
In other recent news, Hims & Hers Health, Inc. has announced the addition of Eli Lilly’s diabetes and weight-loss drug, Zepbound, as well as a generic version of liraglutide to its telehealth platform. This expansion comes as the company aims to broaden its pharmaceutical offerings, aligning with industry trends toward increased online drug accessibility. While Leerink Partners maintained a Market Perform rating with a $40 price target, they noted the high cost of Zepbound at $1,899 per month could affect customer demand. Meanwhile, BofA Securities kept an Underperform rating and a $22 price target, highlighting that the financial impact of Zepbound sales may be minimal due to low margins. The firm also emphasized the potential significance of selling generic liraglutide, despite its limited market success so far.
Additionally, BofA Securities raised its price target from $21 to $22, based on accelerating GLP-1 sales growth data, which could lead to near-term upside to estimates. However, the core business growth appears to be decelerating, with semaglutide representing a significant portion of sales. The potential removal of semaglutide from the sales model poses a risk to Hims & Hers’ future top-line performance. As the company expands its product range, analysts and investors will be closely watching these developments to assess their impact on the company’s competitive standing and financial performance.
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