Key Takeaways
- Bank of America increased its HIMS target price to $37 (up from $36) while maintaining a Neutral stance due to valuation worries
- Monthly growth for oral Wegovy customers stalled in June according to credit card transaction data
- HIMS shares have jumped more than 45% over the last month, fueled by the Eucalyptus purchase and international growth strategy
- More than 28% of shares available for trading are currently sold short, indicating significant market doubt
- Analyst consensus stands at Moderate Buy, though the mean target of $30.14 suggests potential 16% decline
Hims & Hers Health (HIMS) is currently priced at $36.07, representing a gain of over 45% in the past 30 days. Yet BofA Securities recently adjusted its target to $37 from $36 while sticking with a Neutral outlook — a measured response that reveals Wall Street’s hesitation.
Hims & Hers Health, Inc., HIMS
Allen Lutz, an analyst at BofA, highlighted emerging concerns that customer retention for the oral Wegovy product may be weaker than anticipated. This challenge is common in subscription-based models: consumers join at a promotional $39 rate in the first month, but when costs escalate to $149 in month two, a substantial portion discontinue service.
Payment card transaction information from BSM Analytics revealed that HIMS customer counts remained stagnant on a month-over-month basis in June. This stalled growth raises questions when substantial second-half EBITDA expansion is already priced into market expectations.
Rival platform Ro, which introduced oral Wegovy two to three months before HIMS, is now experiencing declining new user acquisition and a flattening customer base. BofA projects HIMS will encounter comparable headwinds.
Despite these reservations, BofA modestly increased its valuation framework — raising the EV/EBITDA multiple to 34.5x for CY26 from 33.5x — acknowledging better-than-anticipated early subscriber numbers and elevated peer valuations. The stock currently commands an EV/EBITDA multiple of 104.65x on a trailing twelve-month basis.
International Expansion and Product Diversification
The optimistic outlook for HIMS rests on its aggressive expansion beyond domestic GLP-1 offerings. In early June, the telehealth company completed its purchase of Eucalyptus, which operates the Juniper weight loss platform, establishing presence in Germany, Japan, Australia, the United Kingdom, and Canada.
HIMS has also unveiled its “Labs AI” clinical technology and introduced Testosterone Rx+, a daily oral formulation combining enclomiphene and tadalafil. These initiatives aim to reduce dependence on GLP-1 injectable products.
A potential demand catalyst exists: approximately 10% of large employers are projected to eliminate obesity medication coverage from their 2027 health plans due to expense concerns, potentially driving more self-pay consumers toward direct-to-consumer services like HIMS.
Regulatory authorities recently indicated they may remove restrictions on 12 therapeutic peptides — a possible policy shift that leadership could leverage to support its ambitious 2030 revenue objective of $6.5 billion.
Upcoming Earnings Hold Critical Answers
Short interest continues to exceed 28% of available shares. This bearish sentiment stems partly from a challenging year start — in February, FDA and DOJ enforcement actions compelled HIMS to withdraw its $49-per-month oral semaglutide product just two days after introduction. A patent infringement claim from Novo Nordisk subsequently emerged, though a strategic collaboration was eventually established in March.
The forthcoming Q2 financial results will face intense scrutiny regarding customer retention metrics and profitability trends as the platform transitions users from compounded formulations to branded pharmaceutical products.
Current Wall Street sentiment registers as Moderate Buy — comprising four Buy recommendations and nine Hold ratings, with zero Sell opinions. The consensus price target of $30.14 indicates approximately 16% potential downside from present trading levels.
Some analysts maintain more optimistic views: Canaccord Genuity has established a $40 target with a Buy recommendation, while Barclays projects $39, emphasizing GLP-1 expansion and elevated website engagement following the Novo Nordisk collaboration.
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