Key Takeaways Bank of America increased HIMS price target to $37 (up from $36) while maintaining Neutral rating due to valuation worries Monthly oral Wegovy subscriber additions stalled in Ju
Hims & Hers Health (HIMS) currently trades at $36.07, reflecting a remarkable 45%+ gain over the past month. However, Bank of America Securities recently bumped its price objective to $37 from $36 while sticking with a Neutral stance — a modest adjustment that speaks volumes about Wall Street’s hesitation.
Hims & Hers Health, Inc., HIMS
BofA’s Allen Lutz pointed to emerging evidence that retention rates for newly enrolled oral Wegovy subscribers might be underwhelming. It’s a classic subscription model challenge: users join at an introductory $39 monthly rate, but when that price escalates to $149 in the second month, a substantial portion choose to discontinue.
Transaction data from BSM Analytics revealed that HIMS customer additions showed virtually no growth on a month-over-month basis in June. This stagnation is concerning when Wall Street has already priced in expectations for robust second-half EBITDA acceleration.
Rival platform Ro, which introduced oral Wegovy offerings two to three months earlier than HIMS, is already experiencing declining new user acquisition alongside a flattening active subscriber base. Bank of America anticipates HIMS may encounter comparable headwinds.
Despite these reservations, BofA marginally increased its valuation framework — adjusting to 34.5x CY26 EV/EBITDA from 33.5x — acknowledging better-than-anticipated initial subscriber uptake and elevated peer group trading multiples. The stock currently commands an EV/EBITDA multiple of 104.65x on a trailing twelve-month basis.
The optimistic thesis for HIMS revolves around its aggressive expansion beyond domestic GLP-1 offerings. Early in June, the company completed its Eucalyptus acquisition, which includes weight management platform Juniper, establishing operations across Germany, Japan, Australia, the United Kingdom, and Canada.
HIMS has also introduced its “Labs AI” clinical decision support tool and debuted Testosterone Rx+, a daily oral formulation combining enclomiphene with tadalafil. These initiatives aim to reduce revenue concentration in GLP-1 injectable medications.
A potential demand catalyst exists as well: approximately 10% of large employers are projected to eliminate obesity medication coverage from their 2027 health benefits due to escalating costs, potentially driving more self-pay consumers toward direct-to-consumer platforms like HIMS.
Regulatory developments may also provide support — health authorities recently indicated they might ease restrictions on 12 therapeutic peptide compounds, a potential policy shift that could help management defend its ambitious 2030 revenue objective of $6.5 billion.
Short interest persists above 28% of available shares. This skepticism stems from a challenging year opening — the FDA and Department of Justice enforcement action in February compelled HIMS to withdraw its $49-per-month oral semaglutide product merely 48 hours post-launch. A patent infringement lawsuit from Novo Nordisk subsequently emerged before the parties reached a strategic collaboration agreement in March.
Investors will scrutinize the forthcoming Q2 earnings release for subscriber retention metrics and profitability trends as the company transitions users from compounded formulations to branded pharmaceutical products.
Current Wall Street consensus stands at Moderate Buy — with four Buy recommendations and nine Hold ratings, alongside zero Sell calls. The mean price objective of $30.14 suggests roughly 16% downside from present trading levels.
Some analysts maintain more optimistic outlooks: Canaccord Genuity has established a $40 price target with a Buy rating, while Barclays positions at $39, emphasizing GLP-1 market penetration and elevated website traffic following the Novo Nordisk collaboration.
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