Hims & Hers Health (HIMS) stock has declined about 17% over the past month, mainly impacted by its fallout with Novo Nordisk (NVO). The Danish healthcare giant terminated its distribution agreement with Hims & Hers, accusing the telehealth company of illegally selling compounded versions of the weight loss drug Wegovy. Despite the recent selloff, HIMS stock is still up 98% year-to-date. Most Wall Street analysts don’t see the correction in Hims & Hers stock as a buying opportunity and are currently cautious due to the ongoing challenges.
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Analysts Are Cautious on Hims & Hers Stock
Despite the termination of the partnership with Novo Nordisk, Hims & Hers bulls remain confident about the health and wellness platform’s growth potential and opportunities in areas beyond GLP-1 drugs. Meanwhile, many analysts are cautious about HIMS stock due to legal risks and valuation concerns.
Recently, Hims & Hers Health announced its planned entry into the Canadian market to offer affordable weight loss care. Reacting to the news, Leerink Partners analyst Michael Cherny reiterated a Hold rating on HIMS stock with a price target of $42. The 4-star analyst thinks that HIMS’ entry into the Canadian market represents a logical and anticipated next step in its international expansion strategy, especially following the recent ZAVA acquisition. Cherny added that HIMS’ move is clearly timed with the expected launch of generic semaglutide (active ingredient in Wegovy) in Canada, allowing HIMS to offer its personalized take/discounted pricing on a generic drug versus the “ongoing push and pull of its compounded U.S. franchise.”
Cherny contended that while the news doesn’t come as a surprise, it reinforces HIMS’ ability to leverage generically available products in new markets and diversify its revenue base. He views HIMS’ expansion into Canada as a potential incremental revenue driver into 2026, “though execution and uptake will be key to watch.” However, even with the foray into the Canadian market marking a potential contributor, Cherny remains neutral on HIMS stock as the uncertainty of the U.S. weight management franchise continues to create “non-fundamental earnings volatility.”
Meanwhile, analysts from Morgan Stanley and Truist are cautious on Hims & Hers stock due to legal risks. Recently, Truist analyst Jailendra Singh reaffirmed a Hold rating on HIMS stock with a price target of $45. Singh thinks that HIMS faces greater litigation risk after the termination of its short-lived partnership with Novo Nordisk. He noted Novo Nordisk’s concerns around HIMS’ “illegal” mass compounding and “deceptive” marketing practices. He added that while HIMS would argue that its compounding business is not violating any intellectual property (IP), Novo Nordisk could make a legal argument around other practices. A litigation, if there is one, could drag on for 18-24 months and could remain an overhang on HIMS stock, concluded Singh.
Is HIMS Stock a Good Buy?
Overall, Wall Street is sidelined on HIMS stock based on seven Holds, one Buy, and two Sell recommendations. The average HIMS stock price target of $41 indicates a downside risk of 14.4% from current levels.
