BofA nudges Hims target up, keeps the brakes on

A higher target, same lukewarm vibe

BofA just gave Hims & Hers a small pat on the back: the bank raised its price target to $25 from $21, but kept the stock at Neutral. Translation? “We see more upside than before, but we’re not exactly sprinting toward the finish line.”

Why the market cares

The upgrade comes with a big asterisk-shaped cloud hanging over the weight-management business. The FDA is setting up meetings to review several peptide-related bulk drug substances for possible inclusion on the 503A Bulks List — a procedural step that could matter a lot for companies selling compounded wellness and GLP-1-style treatments.

For Hims, that’s the kind of regulatory backdrop that can turn into either:

• more room to operate, or
• a headache if the agency tightens the screws again.

Competition is getting spicy

BofA also pointed to Amazon Pharmacy jumping in with same-day delivery for Eli Lilly’s newly approved GLP-1 drug, which adds another heavyweight to an already crowded ring. That’s bad news for anyone hoping the weight-loss market stays a cozy little niche.

And yes, Hims is still trying to broaden its offering with FDA-approved GLP-1 meds on its platform — but when Amazon shows up with a giant logistics backpack, the game changes fast.

The investor takeaway

BofA’s note is a reminder that Hims has optionality, but also plenty of moving parts: regulation, competition, and a valuation that’s already been juiced by a big weekly run-up. Big picture: the story is still very much alive — it just isn’t the kind of alive that comes with easy answers.