Hims & Hers (NYSE:HIMS) extended its recent rally, climbing 10% on Tuesday after a run-up of 49% on Monday, following a newly announced collaboration with Novo Nordisk (NYSE:NVO) and a wave of analyst upgrades.
Under the terms disclosed with the partnership, Hims & Hers may sell commercially available doses of the GLP-1 treatments Ozempic and Wegovy, including a forthcoming pill formulation, as part of a revised approach to weight-loss care centered on GLP-1 therapies. The agreement also saw Novo Nordisk withdraw its pending lawsuit against Hims & Hers.
Brokerage reactions were swift and decisive. BofA Securities analyst Allen Lutz moved his rating from Underperform to Neutral and lifted his price target to $23.00 from $12.50. Lutz said the new target reflects a 23x CY26E EV/EBITDA multiple that now incorporates expected GLP-1 revenue.
Citi analyst Daniel Grosslight likewise upgraded the stock to Neutral, increasing his price objective to $24 from $13.25. Grosslight noted that the partnership requires Hims & Hers to cease mass-personalization, permitting only a limited subset of customers to continue receiving compounded GLP-1 formulations. He added that Novo Nordisk dropping its lawsuit "significantly diminishes legal risk."
Needham analyst Ryan MacDonald upgraded Hims & Hers from Hold to Buy and set a $30.00 target, saying the partnership eases legal concerns and materially alters the company’s weight-loss business model and growth algorithm.
The alliance gives Hims & Hers potential to replace some revenue previously generated from compounded GLP-1s with revenue from a branded partnership. At the same time, the company will operate under new limits on its compounding business.
Market pricing reflected the updated outlook: shares closed at $22.16 on Monday prior to Tuesday’s additional gains.
Context note - The details above summarize analyst commentary and company arrangements as reported in the announcement; no additional figures or forecasts beyond those disclosed by the analysts and the companies involved have been added.