TLDR
- Hims & Hers shifted from compounded semaglutide to branded GLP-1 drugs in March 2026
- Bank of America cut its price target from $23 to $21, keeping a Hold/Neutral rating
- GLP-1 EBITDA contributions could fall 50% year-over-year in 2026
- Amazon Pharmacy began offering Eli Lilly’s new oral GLP-1 drug Foundayo, adding more competition
- HIMS stock is down nearly 39% year-to-date, trading around $20
Hims & Hers made a hard pivot in March 2026, stepping away from compounded semaglutide and moving toward FDA-approved branded GLP-1 medications. The company said the move would make it “the largest global consumer health platform for access to more affordable, approved medications.”
Hims & Hers Health, Inc., HIMS
The transition follows a legal dispute with Novo Nordisk. That battle ended with Hims & Hers agreeing to sell Novo Nordisk’s approved GLP-1 drugs rather than cheaper compounded versions.
The stock has taken a beating. HIMS is down close to 39% so far in 2026, trading around $20 as of Wednesday.
Bank of America analyst Allen Lutz trimmed his price target on HIMS from $23 to $21 this week. He kept his Neutral rating on the stock, citing peer multiple compression and near-term earnings pressure.
Lutz projected that 2026 EBITDA could come in roughly 20% below Street consensus. He also estimated that GLP-1 contributions to EBITDA could fall by as much as 50% year-over-year.
Despite the cautious outlook, Lutz acknowledged that his team is “slightly more optimistic” about Hims & Hers’ international expansion plans. He also noted the $149-per-month branded GLP-1 plan has the potential to match compounded margins over time, depending on how many subscribers convert.
Subscriber Conversion Is the Key Number
Bank of America estimates Hims & Hers could convert 40% to 50% of existing subscribers to branded plans, while retaining 5% to 10% on compounded offerings. That would generate roughly $60 million to $90 million in quarterly GLP-1 revenue.
The company is also targeting international growth. It aims to grow that segment to over $1 billion in revenue within three years, with a mid-teens organic CAGR. Bank of America’s checks on the Eucalyptus platform suggest around 90% of its revenue will come from branded GLP-1 distribution at roughly 40% gross margins.
Canaccord analyst Maria Ripps took a more upbeat view. She reaffirmed her Buy rating, arguing that the Novo Nordisk partnership could be a “long-term tailwind” for Hims & Hers. Ripps said the stock undervalues the company’s telehealth platform, subscriber base, and expanding treatment portfolio.
Amazon Adds Pressure With Lilly’s Foundayo
The competitive picture got more complicated on Thursday. Amazon Pharmacy announced it would offer Eli Lilly’s newly approved oral GLP-1 drug, Foundayo, with same-day delivery. HIMS edged down 0.5% on the news. Novo Nordisk fell 1.5%.
Foundayo is a once-daily oral treatment for adults with obesity or overweight with weight-related conditions. Pricing starts at $25 per month with insurance, or $149 per month for cash-pay customers.
Amazon will offer same-day delivery in nearly 3,000 cities, expanding to 4,500 by year-end. The company said it has delivered GLP-1 medications since 2021 and customers have saved over $200 million through automatic coupons, with GLP-1 drugs being the largest savings category.
Across Wall Street, HIMS carries a Moderate Buy consensus based on four Buys and 10 Holds over the past three months. The average price target of $26.36 implies around 36% upside from current levels.
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