U.S. bank JPMorgan Chase (JPM) has turned bullish on the stock of telehealth company Hims & Hers Health (HIMS).
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The New York-based bank has initiated coverage of HIMS stock with a Buy-equivalent overweight rating and a price target of $35. The price target is 17% higher than where the shares currently trade. JPMorgan cited improving fundamentals and multiple growth drivers that could boost the company’s stock.
The digital healthcare platform, which serves approximately 2.5 million subscribers across specialties such as weight loss, sexual health, and dermatology, is likely to benefit from new partnerships with pharmaceutical companies Novo Nordisk (NVO) and Eli Lilly (LLY), says JPMorgan.
A Turning Point for HIMS?
The partnerships could mark a turning point for Hims & Hers’ weight-loss segment and share price, say analysts at JPMorgan Chase. The bank forecasts that the telehealth company is on track to exceed 100,000 monthly prescriptions for Novo Nordisk’s Wegovy weight-loss drug, translating into annual revenue of $350 million to $400 million.
Beyond weight-loss, JPMorgan’s report highlights peptide-based therapies as a significant long-term opportunity for Hims & Hers Health. Financially, Hims & Hers is projecting to grow its revenue from $2.3 billion in 2025 to over $3.2 billion by 2027. That’s represents more than 20% annual revenue growth, notes JPMorgan.
Is HIMS Stock a Buy?
Hims & Hers stock has a consensus Moderate Buy rating among 15 Wall Street analysts. That rating is based on five Buy and 10 Hold recommendations issued in the last three months. The average HIMS price target of $28.27 implies 6% downside from current levels.
