Citi Reiterates Sell Rating on Hims and Hers (HIMS), PT $30, 'we do think that this will be a slight headwind to HIMS'

Citi analyst Daniel Grosslight reiterated a Sell rating and $30.00 price target on Hims and Hers (NYSE: HIMS)

The analyst comments "This afternoon, Evernorth announced it is launching a new benefit option that caps patient OOP costs for Wegovy and Zepbound at $200/month (LINK). This is lower than the cash pay price for Wegovy offered through NovoCare ($499/month) and Tirzepatide Vials offered through LillyDirect ($349-$499/month). The new offering also has the benefit of counting OOP costs towards the patients’ annual deductible and simplifying prior authorization. To the extent we see plan sponsors adopt this offering, we do think that this will be a slight headwind to HIMS’ newly announced NovoCare partnership where patients get access to Wegovy and ongoing clinician/nutritional support for as little as $599/month (LINK). In our view, the DTC platforms have benefited from employer reluctance to cover GLP-1s for weight loss due to prohibitive costs, but this new offering may accelerate employer coverage adoption."

For an analyst ratings summary and ratings history on Hims and Hers click here. For more ratings news on Hims and Hers click here.

Shares of Hims and Hers closed at $58.00 yesterday.

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