Why the Hims & Hers Stock (HIMS) Crash May Be a Bargain in Disguise

Hims & Hers Health (HIMS) stock has taken a sharp hit recently, sparking concern among investors. The stock suffered a record one-day drop of over 30% following Novo Nordisk’s (NVO) decision to end its partnership with the telehealth company. But beneath the surface of this sell-off, some analysts and retail traders see a potential bargain. Backed by a growing customer base, expanding product lines, and strong long-term growth prospects, the current dip may offer a strategic buying opportunity for those willing to look past short-term volatility.

Hims Stock in the Spotlight

In the past five days, Hims & Hers has ranked among the most purchased stocks on Interactive Brokers, surpassing even big tech giants. According to Interactive Brokers’ chief strategist Steve Sosnick, HIMS stock drew in “opportunistic buyers,” despite a sharp drop.

Sosnick cautioned that it may take time to determine whether investors are wisely buying the dip or prematurely catching a falling knife. Meanwhile, options activity on the platform has shown a clear bullish tilt, suggesting some traders remain confident in a rebound.

Year-to-date, HIMS stock has gained over 75% in trading.

Short-Term Pain, Long-Term Potential Intact

Following the termination, five-star-rated analyst Maria Ripps of Canaccord Genuity maintained her Buy rating on HIMS stock, projecting a potential upside of 58%. Ripps remains confident in Hims & Hers’ long-term growth, noting that its FY2025 guidance is still within reach despite the Novo breakup, as it wasn’t dependent on the deal. She also points to strategic drivers like new product launches, stronger marketing, and potential global expansion to fuel growth in late 2025 and beyond.

Furthermore, despite recent volatility, the long-term outlook for the GLP-1 market remains strong, with some analysts projecting it could surpass $150 billion by 2035. While losing the Novo partnership is a setback, Hims still has the potential to tap into this growth through compounding or new strategic alliances.

Is HIMS a Good Stock to Buy Right Now?

Overall, Wall Street analysts have a Hold consensus rating on HIMS stock based on one Buy, eight Holds, and two Sells assigned in the last three months. The average HIMS stock price target of $39.80 implies a downside of 7% from the current trading level.

See more HIMS analyst ratings