Telehealth firm Hims & Hers has restricted near-term upside potential, based on TD Cowen. The agency downgraded shares to carry from purchase in a Tuesday observe. Analyst Jonna Kim additionally lowered her worth goal to $30 per share from $44, which signifies shares gaining simply 5.3% from Monday’s shut. The “inventory might be range-bound in a publish GLP-1 scarcity world,” Kim stated within the analysis observe. “Close to-term upside could also be restricted, however we just like the story for the long-term as HIMS stays dedicated to creating healthcare accessible for all.” GLP-1 medicines deal with diabetes and weight problems and had been in scarcity as a result of heavy demand. Though the analyst expects robust first-quarter outcomes as a result of compounded demand for weight reduction medicine, she believes the rest of the yr seems to be tough. Hims & Hers is not going to be promoting compounded variations of Wegovy and Ozempic after Could 22, following the Meals and Drug Administration’s announcement that the GLP-1 scarcity is over. Except present GLP-1 customers decide to change to different oral treatment choices comparable to Liraglutide — along with the probability of customers trying elsewhere for GLP-1 choices — Him & Hers’ present 2025 weight reduction income steering seems overly optimistic, based on Kim. As well as, “recession threat and muted shopper demand might be elements to watch,” Kim stated. Yr up to now, shares of the telehealth firm have superior almost 18%. The inventory has soared about 127% during the last 12 months. —CNBC’s Michael Bloom contributed to this report.
