TLDR
- JPMorgan started coverage of HIMS at Neutral with a $32 price target, implying about 16% upside from current levels
- The bank sees risk in Hims & Hers’ shift away from compounded GLP-1 drugs toward branded, FDA-approved options like Wegovy
- Under its Novo Nordisk partnership, Hims fulfilled over 125,000 Wegovy shipments in the first six weeks
- Q2 revenue came in at $753.21 million, up 38.2% year over year, but the company missed badly on earnings, posting a loss of $0.37 per share vs. an expected loss of $0.05
- The stock faces added pressure from an FTC complaint and an active securities class action lawsuit
HIMS opened Friday at $27.52, sitting well below its 52-week high of $65.30. JPMorgan’s new $32 target reflects caution rather than conviction. The stock was trading down about 1% on the day.
Hims & Hers Health, Inc., HIMS
JPMorgan analyst Bryan Smilek started coverage with a Neutral rating, citing the company’s rapid growth but flagging real execution risks tied to its GLP-1 business overhaul.
Hims announced in March it would stop advertising compounded GLP-1 drugs and shift entirely to branded, FDA-approved medications. That pivot carries risk. Compounded sales are falling while branded volumes are still ramping.
Smilek projects 2026 GLP-1 revenue at $1.1 billion, up 46% year over year, driven by the Novo Nordisk partnership. He believes the Wegovy deal should more than cover the hit from exiting compounded sales.
The Novo partnership launched with momentum. Hims fulfilled more than 125,000 Wegovy shipments in just the first six weeks.
JPMorgan sees a long runway for the GLP-1 market. The bank estimates U.S. cash-pay GLP-1 users could grow from about 2.8 million today to more than 8 million by 2030.
Hims itself is targeting 2030 revenue above $6.5 billion and adjusted EBITDA over $1.3 billion, driven by international expansion and new categories including peptides.
Earnings Picture
Last quarter’s results were a mixed bag. Revenue of $753.21 million beat the $698.90 million estimate and grew 38.2% year over year.
But the bottom line was a problem. The company reported a loss of $0.37 per share, far worse than the expected loss of $0.05. That gap rattled investors.
The stock dropped 7.7% following the report, according to Zacks, showing how sensitive HIMS is to profitability concerns.
Legal Pressure Adding to the Mix
Beyond the earnings miss, HIMS is dealing with two legal headaches. An FTC complaint alleges deceptive and unlawful privacy practices. A separate securities class action covers investors who held HIMS from August 2025 through July 2026, with a lead-plaintiff deadline of November 2, 2026.
Neither case has been proven in court, but both add uncertainty.
Analyst sentiment across Wall Street sits at a consensus Hold. Of 16 analysts tracked by MarketBeat, 12 rate it Hold, three rate it Buy, and one rates it Sell. The average price target is $32.43.
JPMorgan’s Smilek says he wants to see the branded GLP-1 transition hold up, newer specialties grow durably, and margins expand before turning more positive on the stock.
Insiders have been selling. Over the last 90 days, insiders sold 190,227 shares worth over $6.1 million.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
