Hims & Hers Health (HIMS) stock surged about 24% yesterday, hitting a new 52-week high of $31.40. The upside can be attributed to rising optimism that the company could benefit from Dr. Marty Makary’s nomination as the Commissioner of the U.S. Food and Drug Administration (FDA). Makary, chief medical officer at a telehealth provider Sesame, which sells compounded GLP-1 weight loss drugs just like HIMS, is expected to bring a more favorable regulatory environment for the company.
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Hedge fund Hunterbrook Capital’s bullish report on HIMS has also driven optimism about the company’s future performance. The firm that had issued a short report on Hims & Hers in June has now reversed its stance and taken a long position in the stock.
Hunterbrook believes that Makary could be a “key ally” for HIMS, given his experience in the compounded GLP-1 weight loss drug market. Also, the report highlighted that Makary’s nomination could provide an opportunity for the company to stabilize its business.
Is HIMS a Good Stock to Buy?
Turning to Wall Street, HIMS has a Hold consensus rating based on four Buys, seven Holds, and one Sell assigned in the last three months. At $24, the average Hims & Hers price target implies a 23.4% downside potential. Shares of the company have gained over 252% year-to-date.
