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 surrounding the legislative environment and its potential impact on Hims & Hers Health. The introduction of the SAFE Act of 2025 in Congress, which aims to impose stricter regulations on compounding pharmacies, poses a risk to the company’s business model. Although the likelihood of the bill passing is currently low, the provisions could significantly affect the compounding of drugs like semaglutide, a key component of Hims & Hers Health’s offerings.
Furthermore, the stock’s current price of $37.99 exceeds the price objective set at $32.00, suggesting an overvaluation in the market. This discrepancy between the market price and the price objective, combined with the potential regulatory challenges, supports the Sell rating. Monitoring the progress of the bill is crucial, as any changes in its status could further influence the company’s future prospects.
HIMS’s price has also changed moderately for the past six months – from $55.250 to $37.880, which is a -31.44% drop .