Michael Cherny, an analyst from Leerink Partners, reiterated the Hold rating on Hims & Hers Health (HIMS – Research Report). The associated price target remains the same with $40.00.
Michael Cherny has given his Hold rating due to a combination of factors affecting Hims & Hers Health’s market position. The recent announcement by Novo Nordisk of a direct-to-consumer cash-pay option for Wegovy at $499 per month introduces a significant competitive challenge for Hims & Hers, which offers a compounded semaglutide product at $165 per month. This new offering by Novo Nordisk is not personalized but provides a branded solution for uninsured or uncovered patients, potentially impacting Hims & Hers’ market share.
Additionally, the FDA’s declaration that the semaglutide shortage has ended, coupled with a lawsuit questioning the FDA’s evidence for this decision, adds further uncertainty to the market. Despite Hims & Hers’ efforts to enhance its personalized weight management offerings, including metformin and soon generic liraglutide, these developments raise concerns about the long-term sustainability of its revenue stream in this segment. Consequently, Cherny maintains a Market Perform rating, reflecting these competitive and regulatory challenges.
Cherny covers the Healthcare sector, focusing on stocks such as Walgreens Boots Alliance, Hims & Hers Health, and Align Tech. According to TipRanks, Cherny has an average return of 3.4% and a 52.43% success rate on recommended stocks.
In another report released on March 5, Morgan Stanley also maintained a Hold rating on the stock with a $60.00 price target.
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