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Investing.com - Truist Securities has reiterated its Hold rating and $45.00 price target on Hims and Hers (NYSE:HIMS) following the discovery of price increases for the company’s compounded semaglutide subscriptions. According to InvestingPro data, HIMS is currently trading above its Fair Value, with a P/E ratio of 66.12.
The firm’s research revealed that Hims and Hers has raised prices across all its subscription tiers for compounded semaglutide, a medication used for weight loss. The increases amount to $100 per month for three-month subscriptions, $50 per month for six-month subscriptions, and $34 per month for twelve-month subscriptions. The company has demonstrated strong financial performance, with revenue growing 86% and maintaining a robust gross margin of 77%.
Truist Securities also noted that the one-month subscription option for compounded semaglutide appears to have been discontinued on the company’s patient intake form, despite multiple attempts to locate this option during their research.
The research firm indicated uncertainty about whether the removal of the one-month option applies only to new subscribers or extends to both new and renewing customers.
The price increases and subscription changes may be in response to "softening GLP-1 trends" or could represent a "strategic pricing action," according to Truist Securities’ analysis of the weight management segment of Hims and Hers’ business.
In other recent news, Hims & Hers Health has announced plans to expand into Canada by 2026, coinciding with the global introduction of generic semaglutide. This move is part of the company’s strategy to offer lower-cost treatment options and broaden healthcare access in North America’s largest GLP-1 market. Additionally, Hims & Hers recently acquired ZAVA, a European digital health platform, to further its international growth. Meanwhile, Morgan Stanley (NYSE:MS) has maintained its Equalweight rating and $40 price target on the company amidst ongoing legal challenges surrounding compounded GLP-1 medications. These legal proceedings are expected to continue for several years, as noted by legal experts consulted by the firm.
Furthermore, Truist Securities has reiterated a Hold rating with a $45 price target on Hims & Hers, citing concerns over the company’s ability to meet its full-year 2025 revenue guidance. The firm’s analysis suggests that second-quarter 2025 revenues will likely fall between $543-$550 million, slightly below consensus estimates. In leadership news, Hims & Hers has appointed Dheerja Kaur as its first Chief Product Officer, bringing nearly two decades of experience in building consumer products. Kaur’s role will focus on enhancing provider-patient engagement and developing AI-powered tools as the company pursues global expansion and invests in new offerings.
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