Hims & Hers (HIMS) Shifts Beyond GLP-1 Controversy to Long-Term Health Platform

Hims & Hers (HIMS) is moving from the controversy surrounding glucagon-like peptide-1 (GLP-1) to a long-term health platform. Not that long ago, it looked like a vulnerable growth name with a legal cloud over it. Now the picture is different. The business looks more credible, more connected, and better positioned for the long run.

We have moved from debating how Hims & Hers fits around compounded weight-loss drugs to whether it can turn its digital reach into a durable position across branded treatments and the emerging demand for longevity. That is why, despite its near-term market volatility, I remain bullish on HIMS stock.

A Truce in the Weight-Loss Wars

Peak bearish sentiment on Hims & Hers hit not that long ago, with investors fearing Big Pharma would eventually crush the company in court. Much of that argument centered on compounded semaglutide, which critics viewed as a temporary workaround that would disappear once the U.S. Food and Drug Administration (FDA) officially moved past the shortage phase.

However, about a month ago, the whole story changed. Novo Nordisk (NVO) not only backed away from its patent lawsuit but also ended up shaking hands with Hims & Hers. Instead of fighting the platform, it partnered with it, agreeing to distribute branded Wegovy and Ozempic through Hims. For me, that was the much-needed validation that the company’s distribution potential indeed offers a moat. Hopefully, as a result, the company will begin to be treated as a legitimate channel by one of the industry’s biggest players.

We can also see this shift play out in founder and CEO Andrew Dudum’s own comments. In a recent post, he suggested that Hims was on track to reach 100,000 Wegovy prescriptions a month. Beyond the fact that this is an impressive figure that should translate into strong revenue growth ahead, it also implies the old legal overhang is probably no longer the main issue people thought it was. At this point, Hims is becoming a real distribution channel for branded drugs, with a digital platform that traditional pharma companies have struggled to build for themselves. That is what makes the bullish case so strong.

A Potential Lilly Catalyst and the Peptide Pivot

Now, if the Novo deal showed the model works, I believe that a potential deal with Eli Lilly (LLY) could be the next big unlock. There has been growing talk that Lilly may want to utilize Hims as a channel for its own products, which would give it access to a huge base of digitally native customers. That could be the turning point that finally turns sentiment positive. Even that may be only part of the picture. Weight loss is what gets people’s attention right now, but it may end up being just the front door. The broader, longer-term angle is the company’s move into peptides, which still feels early.

We are seeing a massive surge in search trends for peptides as the “longevity” trend shifts from the niche biohacking community into the mainstream. Hims is uniquely positioned here because they have already built the trust and the logistics. Their new “Labs” initiative, which focuses on personalized biomarkers, is the perfect Trojan horse for a comprehensive peptide offering. As consumers shift toward proactive health rather than reactive crisis management, Hims has the platform ready to deliver these treatments at scale.

Pricing the Future at a Discount

Despite this clarity, the stock has taken a beating lately. Because investors have gone “risk-off,” HIMS has plummeted, currently trading around $19-$20. To be fair, the risks aren’t invisible. Long-term margins remain a bit speculative as the company transitions from high-margin compounding to a distribution-heavy model for branded drugs. There’s also the perennial fear that a “higher-for-longer” interest rate environment will continue to dampen growth multiples across the entire telehealth sector.

However, the math is starting to look a bit disconnected from reality. Growth is still strong. The company recently guided to 2026 revenue of $2.7 billion–$2.9 billion, and even using the low end, or about $2.73 billion, or the consensus estimate as a conservative midpoint, the stock is trading at just about 1.6x 2026 expected revenue.

I believe this could prove to be a depressed valuation for a company still growing fast, building toward profitability, and sitting on a large recurring subscriber base. There are still real questions around long-term margins, sure, but today’s multiple would better fit a slower, more troubled company, not a health-tech platform that is still expanding and leading its category.

Is HIMS Stock a Buy, Sell, or Hold?

Despite the stock’s extended sell-off, Hims & Hers maintains a Moderate Buy consensus rating on Wall Street, based on four Buy and 10 Hold ratings. Despite the intensely bearish sentiment, not a single Wall Street analyst rates the stock a Sell. In addition, HIMS’ average price target of $26.36 implies about 36% upside over the next 12 months.

Conclusion

Hims has changed meaningfully as a business. It is no longer tied solely to the compounding trade, and that makes the investment case much less fragile than it used to be. The stock may stay choppy in the near term, so some caution still makes sense. Even so, the longer-term setup is starting to look too compelling to dismiss.