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Legal Challenges and Uncertainty Justify Hold Rating on Hims & Hers Health

Legal Challenges and Uncertainty Justify Hold Rating on Hims & Hers Health

Analyst Craig Hettenbach of Morgan Stanley maintained a Hold rating on Hims & Hers Health (HIMSResearch Report), 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 current legal challenges faced by Hims & Hers Health. The termination of a partnership with Novo has reignited concerns about the company’s prospects, particularly in light of ongoing legal actions initiated by Eli Lilly against compounders offering personalized tirzepatide. These lawsuits, which are concentrated in a few jurisdictions, could potentially impact the company’s operations and stock performance.
Additionally, the legal landscape is complicated by Empower’s attempt to challenge the composition-of-matter patent for tirzepatide at the Patent Trial and Appeal Board. Although this challenge is seen as a strategic move rather than a significant threat to the patent’s validity, it adds another layer of uncertainty. The outcome of these legal proceedings, expected in late 2025, could play a crucial role in shaping the company’s future, thereby justifying the Hold rating as investors await more clarity.

According to TipRanks, Hettenbach is ranked #2665 out of 9622 analysts.

In another report released on June 24, Leerink Partners also maintained a Hold rating on the stock with a $42.00 price target.

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