Hims & Hers Health: Softening Online Metrics and Uncertain GLP-1 Trajectory Drive Underperform (Sell) View

Allen Lutz, an analyst from Bank of America Securities, reiterated the Sell rating on Hims & Hers Health. The associated price target remains the same with $32.00.

Allen Lutz has given his Sell rating due to a combination of factors tied to Hims & Hers Health’s near-term performance and longer-term growth expectations. He notes that fourth-quarter online revenue appears likely to come in slightly below market forecasts, with key operational indicators such as total orders and app downloads showing softness despite some strength in the Hers segment’s monthly active users. Lutz also highlights that total order volumes are decelerating, with a particularly sharp decline in new customer orders and continuing weakness in returning customer activity, which raises concerns about the sustainability of demand. Although GLP-1 related revenue is growing and new initiatives such as labs, hormone therapy, international expansion, and added SKUs could support differentiation over time, these growth levers may not be sufficient in the near term to offset current headwinds.

Lutz further argues that investor expectations for 2026 online revenue appear aggressive, as consensus assumes a substantial year-over-year increase that he believes will largely depend on the trajectory of GLP-1 sales, an area that still carries uncertainty. While observed sales remain up year over year, their month-over-month momentum has flattened, suggesting limited acceleration in the underlying business. Adjustments in the company’s GLP-1 offerings—such as removing longer-duration plans and lowering prices on shorter-term options—also signal a potentially more competitive or price-sensitive environment. Taken together, these factors lead him to maintain an Underperform (Sell) rating with a price objective below the current share price, reflecting his view that risk-reward remains unfavorable at current valuation levels.