Hims & Hers price target raised to $23 from $20 at BofA

BofA raised the firm’s price target on Hims & Hers to $23 from $20 and keeps a Buy rating on the shares. The firm notes that on Friday, the FDA said in a court filing that it would reconsider the removal of tirzepatide from the shortage list and allow compounding pharmacies to keep providing the drugs while it reviews whether there is a shortage of the active ingredient. This is a reversal from the FDA’s decision earlier this month to resolve the shortage of tirzepatide. At the time of the prior announcement, the FDA warned that compounding pharmacies would be restricted from manufacturing compounded versions of the drug, BofA adds. While Hims & Hers does not currently sell compounded versions of tirzepatide, the FDA’s decision highlights evolving policies and the uncertain duration of the compounded GLP1 opportunity, the firm argues. Nonetheless, BofA remains cautious on the longer-term duration of the opportunity for Hims & Hers to benefit from compounded semaglutide.