BofA Securities Negative on Hims and Hers (HIMS): 'Observed total sales and GLP-1 sales decline in April'

BofA Securities analyst Michael Cherny reiterated an Underperform rating and $28.00 price target on Hims and Hers (NYSE: HIMS)

The analyst comments "Observed sales data continues to weaken sequentially. Observed sales growth y/y decelerated 6ppts from March with sales down 6% m/m (3% adj. for days) and GLP-1 sales declined for the 2nd consecutive month. While early in the quarter, April trends suggest upside to 2Q Street estimates w/ Online revenue of $552MM-$578MM vs. VA consensus of $539.2MM. However, this assumes compounded semaglutide sales remain consistent through June as a percentage of sales. Additionally, modeling revenue from the Wegovy partnership which began in May would likely make future projections more challenging. Meanwhile, growth ex-GLP-1s remains relatively steady and could be benefitting from oral weight loss demand as customers switch from commercial GLP-1 doses. The 503B semaglutide compounding deadline on May 22nd could prompt the FDA or NVO to work toward limiting the scale of personalized compounding. Ultimately, the ability to meet the FY25 guide hinges on the scale of personalized GLP-1s (refer to our 1Q note), which is a catch-22 as higher GLP-1 sales could reintroduce litigation risk into the model. If sales of compounded semaglutide moderates in May/June, core growth and Wegovy would need to provide the offset which could prove challenging. Maintain Underperform."

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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