JPMorgan opened coverage of Hims & Hers Health with a Neutral rating and assigned a December 2027 price target of $32, assessing the direct-to-consumer health platform's rapid expansion alongside execution risks as it shifts its GLP-1 approach.
Analyst Bryan Smilek highlighted the company's scale - roughly 2.9 million subscribers spanning weight loss, women's health and hair loss specialties - and described Hims & Hers as being in the midst of a strategic transition in its GLP-1 business. In March, the company disclosed plans to prioritize branded, FDA-approved medications and to cease advertising compounded GLP-1 products.
Under its partnership with Novo Nordisk, Hims has reported fulfilling more than 125,000 Wegovy shipments during the first six weeks after launch. Smilek wrote that the Novo tie-up should help offset declines tied to compounded GLP-1 offerings, projecting 2026 GLP-1 revenue of $1.1 billion, a 46% rise that reflects a drop in compounded sales alongside a strong increase in branded volumes.
JPMorgan's analysis also pointed to a sizable potential market for cash-pay GLP-1 users in the U.S., estimating the pool could surpass 8 million by 2030, up from about 2.8 million at present. Hims & Hers itself has set targets for 2030 revenue above $6.5 billion and adjusted EBITDA greater than $1.3 billion, goals it expects to support through international expansion, the development of new specialties such as peptides, and AI-driven efficiency gains.
Smilek noted positive aspects of Hims' positioning, saying, "We believe the Novo partnership should more than offset compounded GLP-1 headwinds." He also expressed confidence in the company's structural advantages, writing, "We're positive on HIMS' vertical integration and leading brand scale and expansion across specialties & geos."
Despite these strengths, the analyst emphasized that tangible execution remains necessary. He singled out the need to demonstrate a successful transition to branded GLP-1s, sustained growth in emerging specialties, and expansion of margins before becoming more upbeat on the shares.
JPMorgan's initiation places weight on both the upside potential tied to branded GLP-1 volume growth and the uncertainty inherent in pivoting away from compounded offerings. The bank's forecasts and the company's own 2030 targets together outline a trajectory that depends on execution across product, geographic and operational initiatives.
Summary: JPMorgan begins coverage of Hims & Hers at Neutral with a $32 December 2027 price target, balancing subscriber growth and a Novo Nordisk partnership against execution risks as the company shifts to branded GLP-1 therapies.