Daniel Grosslight, an analyst from Citi, maintained the Sell rating on Hims & Hers Health (HIMS – Research Report). The associated price target remains the same with $27.00.
Daniel Grosslight has given his Sell rating due to a combination of factors related to Hims & Hers Health’s recent business decisions. The company has expanded its offerings to include branded Tirzepatide, which is priced significantly higher than alternative options available on the market. Without insurance coverage, the high cash price is likely to deter potential customers, limiting the product’s market penetration.
Additionally, any sales generated from this offering are expected to yield minimal profit margins due to high wholesale costs, a challenge that many pharmacies face with branded GLP-1 medications. Furthermore, Hims & Hers is offering generic liraglutide, but its daily injection requirement and lower efficacy compared to other alternatives make it less attractive to consumers. These factors contribute to the expectation of limited uptake and an anticipated negative return on the stock, justifying the Sell rating.
According to TipRanks, Grosslight is a 4-star analyst with an average return of 8.5% and a 46.04% success rate. Grosslight covers the Healthcare sector, focusing on stocks such as Hims & Hers Health, Cardinal Health, and Health Catalyst.
In another report released yesterday, Bank of America Securities also maintained a Sell rating on the stock with a $22.00 price target.