Key Takeaways
- The telehealth platform transitioned from compounded semaglutide to FDA-approved branded GLP-1 treatments in March 2026
- Bank of America reduced its HIMS price target to $21 from $23 while maintaining a Neutral stance
- Analysts project GLP-1-related EBITDA could decline by 50% on a year-over-year basis in 2026
- Competitive pressures intensified as Amazon Pharmacy launched Eli Lilly’s oral GLP-1 medication Foundayo
- Shares of HIMS have plummeted nearly 39% year-to-date, hovering near the $20 mark
In March 2026, Hims & Hers executed a strategic pivot away from compounded semaglutide formulations toward FDA-sanctioned branded GLP-1 therapies. The organization positioned this shift as transforming it into “the largest global consumer health platform for access to more affordable, approved medications.”
Hims & Hers Health, Inc., HIMS
This strategic realignment came after settling a legal confrontation with Novo Nordisk. The resolution required Hims & Hers to distribute Novo Nordisk’s officially approved GLP-1 products instead of more economical compounded alternatives.
Investors have reacted negatively to these developments. HIMS shares have plummeted approximately 39% during 2026, with the stock trading at roughly $20 as of midweek.
Bank of America’s Allen Lutz lowered his valuation target for HIMS from $23 down to $21 recently. His Neutral recommendation remained unchanged, pointing to comparable company valuation compression and expected short-term profitability challenges.
Lutz’s analysis suggests 2026 EBITDA figures may land approximately 20% beneath Wall Street’s collective expectations. His projections also indicate GLP-1-driven EBITDA contributions might contract by up to 50% compared to the previous year.
Neverthstanding the reserved forecast, Lutz mentioned his research team maintains “slightly more optimistic” expectations regarding the company’s overseas expansion initiatives. He further highlighted that the $149 monthly branded GLP-1 subscription offering could potentially achieve profitability margins comparable to compounded products eventually, contingent upon subscriber migration rates.
Subscription Migration Rates Will Determine Success
Bank of America’s modeling anticipates Hims & Hers could successfully transition between 40% and 50% of current subscribers toward branded subscription plans, while maintaining 5% to 10% on compounded alternatives. This conversion pattern would yield approximately $60 million to $90 million in GLP-1 quarterly revenues.
The organization has also prioritized global market penetration. Management targets expanding international operations beyond $1 billion in annual revenue over a three-year horizon, projecting mid-teens organic compound annual growth rates. Bank of America’s analysis of the Eucalyptus platform indicates approximately 90% of revenues will originate from branded GLP-1 distribution, generating roughly 40% gross profit margins.
Canaccord’s Maria Ripps presented a more bullish perspective. She maintained her Buy recommendation, contending the Novo Nordisk collaboration represents a “long-term tailwind” opportunity for Hims & Hers. Ripps argued current market valuations fail to adequately reflect the company’s telehealth infrastructure, customer base, and diversifying treatment offerings.
Amazon Intensifies Competition With Foundayo Launch
The competitive landscape became increasingly challenging Thursday when Amazon Pharmacy revealed plans to distribute Eli Lilly’s recently approved oral GLP-1 medication Foundayo with same-day fulfillment capabilities. HIMS declined 0.5% following the announcement. Novo Nordisk shares dropped 1.5%.
Foundayo represents a once-daily oral therapy designed for adults managing obesity or overweight conditions with related health complications. The medication costs $25 monthly for insured patients, or $149 monthly for those paying out-of-pocket.
Amazon plans same-day delivery coverage across nearly 3,000 metropolitan areas, with expansion to 4,500 locations by year-end. The e-commerce giant disclosed it has distributed GLP-1 medications since 2021, with customers accumulating over $200 million in savings through automated discount programs, making GLP-1 drugs their highest savings category.
Wall Street analysts currently assign HIMS a Moderate Buy consensus rating, derived from four Buy recommendations and 10 Hold ratings issued during the past three months. The consensus price target of $26.36 suggests potential upside of approximately 36% from prevailing price levels.
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