Truist Securities Reiterates Hold Rating on Hims and Hers (HIMS)

Truist Securities analyst Jailendra Singh reiterated a Hold rating and $45.00 price target on Hims and Hers (NYSE: HIMS).

The analyst comments "Thoughts on Evernorth's Weight Loss Drugs Coverage Announcement. On 5/21, after the close, Evernorth (part of Cigna, CI, Buy, MacDonald) announced a pharmacy benefit offering that would make weight loss medications Wegovy and Zepbound available at a monthly cost not exceeding $200 to patients, with the added benefit of counting towards the patient's annual deductible. Cigna notes that this has been driven by its direct negotiations with the medications' manufacturers. Evernorth also noted in its release that the prior authorization processes accompanying the new offering will be simplified and automated for faster access. Considering the big three PBMs have historically moved in lock step with each other, we believe it is very likely that other PBMs will follow suit in some way on weight loss medication coverage. While it remains to be seen how onerous it will be for patients to get access to these drugs, the price point of $200/month is highly attractive compared to other price points in the market, including HIMS' compounded Semaglutide at $399/month for 1-month subscription, Wegovy at $899/month for 1-month subscription, and Liraglutide for $499/month for 3-month subscription (lowest duration available). On its 1Q25 earnings call, HIMS noted it had very little interest in integrating insurance onto its platform as it views the vast majority of consumers as underinsured with high deductibles, making GLP-1 drugs essentially unaffordable even for insured individuals. However, Evernorth's weight loss coverage announcement today essentially challenges that argument. As we have noted in the past, one of the major risks to the GLP-1 cash pay market is that, as GLP-1 prices decline, it will result in more employers and insurers covering the previously expensive medications."

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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