Hims & Hers price target raised to $61 from $31 at Needham

Needham raised the firm’s price target on Hims & Hers to $61 from $31 and keeps a Buy rating on the shares. The company reported strong Q4 results but the shares have sold off since the FDA announced last week that the semaglutide shortage is over, the analyst tells investors in a research note. The firm says that while this shortens the runway for revenue generation for the commercially available doses, Hims & Hers sees a durable weight loss sales stream throughout fiscal 2025 via a combination of personalized semaglutide, oral weight loss offerings, and generic liraglutide, which will launch in early second half of the year. The company issued fiscal 2025 guidance well above consensus, assuming $725M of weight loss revenue, which is above Needham’s bull case scenario outlined in its 2025 top pick report, the anlayst points out. The firm sees no reason to change its view and remains a buyer of the stock on weakness.