Truist analyst Jailendra Singh keeps a Hold rating and $45 price target on Hims & Hers (HIMS) but notes that the company faces greater litigation risk after Novo Nordisk (NVO) terminated its partnership. Novo’s collaboration termination was driven by its concerns around Hims’ “illegal” mass compounding and “deceptive” marketing, and while Hims would argue that its compounding business is not violating any IP, Novo could make a legal argument around other practices, the analyst tells investors in a research note. A litigation, if there is one, could drag on for 18-24 months and could remain an overhang on Hims shares, the firm added.
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