Analyst Craig Hettenbach of Morgan Stanley maintained a Hold rating on Hims & Hers Health, retaining the price target of $40.00.
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Craig Hettenbach has given his Hold rating due to a combination of factors surrounding the legal and business challenges faced by Hims & Hers Health. The recent termination of the collaboration between Novo and Hims has heightened attention on the potential legal implications, particularly concerning the 503A compounding practices. Legal experts consulted by Hettenbach suggest that ongoing lawsuits related to these practices could take several years to resolve, adding uncertainty to the company’s future prospects.
Furthermore, the experts highlighted the complexities of the legal landscape, with differing opinions on the legality and risks associated with mass-scale compounding of GLP-1 medications. This uncertainty, coupled with the need for compliance with regulatory requirements, suggests a cautious approach. As a result, Hettenbach’s Hold rating reflects a balanced view, acknowledging both the potential risks and the company’s current market position.
According to TipRanks, Hettenbach is a 4-star analyst with an average return of 3.6% and a 54.62% success rate.
In another report released on June 24, Deutsche Bank also reiterated a Hold rating on the stock with a $43.00 price target.