HIMS
Wall Street says: not so fast… but higher
Hims & Hers is having one of those classic “the chart is doing backflips and the analysts are scrambling to update the spreadsheet” days. On Wednesday, both BofA Securities and Canaccord Genuity raised their price targets, giving the stock another excuse to keep running.
Canaccord’s Maria Ripps kept a Buy rating and boosted her target to $40 from $32, pointing to improving sales trends and Hims’ shift away from compounded weight-loss drugs toward branded alternatives. BofA’s Allen Lutz also raised his target — to $36 from $25 — while keeping a Neutral rating, which is Wall Street’s way of saying, “Nice run. Please don’t make me chase this too hard.”
Why the bulls are licking their chops
The bullish case is pretty straightforward: Hims has been showing stronger growth, the company’s second-quarter momentum has improved, and the stock has already ripped about 67% in Q2. That kind of move tends to get people on the train even if they missed the first few stops.
A few details are doing the heavy lifting here:
- sales growth reportedly accelerated from mid- to high-single digits in April to high-teens by June
- the company launched generic semaglutide in Canada in late May
- it finished the Eucalyptus acquisition in early June
That’s a lot of moving parts for one telehealth name, and investors clearly like the direction of travel.
But there’s a regulatory banana peel
Here’s the catch: analysts also flagged a near-term FDA-related risk. The agency is recommending against allowing compounding pharmacies to make certain peptides, and a PCAC review of seven peptides is scheduled for July 23rd–July 24th.
Translation: Hims can absolutely keep flexing if growth stays hot, but the regulatory backdrop could make this rally a little wobbly. Big picture: the stock is behaving like a momentum rocket, yet the FDA is still standing near the launchpad with a clipboard.