Analyst Allen Lutz of Bank of America Securities maintained a Sell rating on Hims & Hers Health, retaining the price target of $32.00.
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Allen Lutz has given his Sell rating due to a combination of factors affecting Hims & Hers Health. The recent pricing strategy by Novo Nordisk, which introduced lower prices for its GLP-1 products, poses a significant challenge to Hims & Hers Health. The reduced cost of branded GLP-1 medications such as Wegovy and Ozempic may pressure the adoption of HIMS’ compounded semaglutide, as consumers might prefer the more affordable branded options.
Additionally, the potential for continued price compression in branded medications raises concerns about Hims & Hers Health’s ability to maintain a competitive edge based on cost. Although HIMS is working to verticalize its supply chain to mitigate these challenges, it may not fully offset the impact of decreasing prices. Furthermore, the company could face increased costs in acquiring new customers in the near term, adding to the financial pressures. These factors collectively contribute to the Sell rating by Allen Lutz.
In another report released on November 6, Citi also maintained a Sell rating on the stock with a $30.00 price target.
Based on the recent corporate insider activity of 212 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HIMS in relation to earlier this year.