Allen Lutz, an analyst from Bank of America Securities, reiterated the Sell rating on Hims & Hers Health (HIMS – Research Report). The associated price target was raised to $22.00.
Allen Lutz has given his Sell rating due to a combination of factors affecting Hims & Hers Health’s financial outlook. The primary concern is the slowing growth in the company’s core business, excluding GLP-1 sales, which has been decelerating since the introduction of GLP-1s. This slowdown poses a risk to the company’s revenue, especially as GLP-1s now account for nearly half of the sales, and any changes in this segment could significantly impact overall performance.
Additionally, while there is potential upside from the 503A compounding exemption for semaglutide, there are looming legal challenges that could affect this opportunity. The company’s ambitious weight loss target of $725 million appears more achievable with the current GLP-1 contributions, but the non-weight loss growth targets remain challenging. These factors contribute to the execution risk, leading to the reiteration of the Underperform rating with a price objective of $22.
Lutz covers the Healthcare sector, focusing on stocks such as Hims & Hers Health, Teladoc, and Cardinal Health. According to TipRanks, Lutz has an average return of 9.5% and a 64.55% success rate on recommended stocks.
In another report released on March 10, Citi also reiterated a Sell rating on the stock with a $27.00 price target.