Hims & Hers’ weight loss strategy validated by Novo DTC offering, says BofA

BofA analyst Allen Lutz reiterated an Underperform rating and $21 price target on Hims & Hers (HIMS) after Novo Nordisk (NVO) announced that the company is lowering the cost of all doses of Wegovy through a direct-to-patient cash pay pharmacy model called NovoCare. The news, which follows Eli Lilly (LLY) launching single-dose vials of Zepbound, signals that drugmakers are embracing and leaning into the direct-to-consumer channel, and the firm believes this validates Hims & Hers’ weight loss strategy in 2025. Overall, BofA added that it does not see upside tot 2025 revenue guidance and thinks the beat and raise story is likely over in the near-term