Overview
BofA Securities on Monday lowered its price target for Hims & Hers (NYSE:HIMS) to $21.00 from $26.00 and left its rating unchanged at Underperform. The revised target aligns closely with InvestingPro's Fair Value reading, which indicates the stock is modestly overvalued at current levels.
Share performance and valuation
HIMS shares have suffered steep losses recently, falling nearly 13% in the past week and about 56% over the last six months. At present trading levels the stock carries a price-to-earnings ratio of 42.7.
Regulatory actions and referrals
Federal regulators announced a series of moves late last week that directly affect Hims & Hers' product offerings. On Friday the U.S. Food and Drug Administration disclosed plans to restrict GLP-1 active pharmaceutical ingredients when they are used in non-FDA-approved compounded drugs that are being marketed as alternatives to FDA-approved GLP-1 treatments. Hims & Hers was explicitly named by the agency among the companies involved in this market.
Separately, U.S. Department of Health & Human Services General Counsel Michael Stuart posted on social media that the HHS Office of the General Counsel had referred Hims & Hers to the Department of Justice for investigation into possible violations of the Federal Food, Drug, and Cosmetic Act and applicable Title 18 provisions.
The FDA articulated concerns about direct-to-consumer promotional practices tied to compounded products. The agency noted that promotional materials for non-approved compounded drugs must not claim those products are generic versions of or identical to FDA-approved drugs; must not assert that the compounded drugs use the same active ingredient as approved products; and must not represent compounded drugs as clinically proven to produce the same results as FDA-approved medicines.
Company response and product changes
In response to these regulatory developments, Hims & Hers announced on Saturday that it will discontinue offering an oral semaglutide pill. The company cited what it described as constructive conversations with stakeholders across the industry as the rationale for that decision.
At the same time, the company confirmed other strategic initiatives remain active. Hims & Hers announced the launch of a multi-cancer screening blood test developed by GRAIL, Inc., which the company said is capable of detecting signals for more than 50 cancer types before symptoms appear, including cancers that often lack early detection methods such as pancreatic and ovarian cancers.
Financial outlook and analyst coverage
Despite regulatory headwinds and the product pullback, InvestingPro data indicates Hims & Hers is profitable and that net income is expected to grow this year. Investors awaiting the company's next earnings report on February 23 can consult InvestingPro's Research Report for more detailed analysis and additional ProTips.
On the sell-side, views differ. Morgan Stanley has maintained an Equalweight rating on Hims & Hers with a $40.00 price target, noting the company has experienced a noticeable slowdown in revenue growth and projecting further deceleration to 17% in 2026 and 15% in 2027, both below consensus. Meanwhile, Evercore ISI initiated coverage with an In Line rating and a $33.00 price target, describing the current valuation as reasonable but flagging near-term multiple risks.
Context and implications
The sequence of regulatory pronouncements, the HHS referral to the Department of Justice, the withdrawal of the $49 GLP-1 weight-loss pill, and divergent analyst perspectives create a complex operating environment for Hims & Hers. Product innovation continues alongside heightened regulatory risk and slower revenue expansion, leaving investors to weigh durability of profitability against potential legal and compliance exposure.
Key facts
- BofA reduced its HIMS price target to $21 from $26 and kept an Underperform rating.
- FDA announced restrictions on GLP-1 APIs in compounded drugs and specifically named Hims & Hers.
- HHS Office of the General Counsel referred Hims & Hers to the Department of Justice for possible violations of federal law.
- Hims & Hers has stopped offering its oral semaglutide pill and discontinued a $49 GLP-1 weight-loss product.
- Company launched a multi-cancer screening blood test developed by GRAIL, Inc.
- Shares have dropped nearly 13% over the past week and about 56% over six months; trailing P/E is 42.7.