Hims and Hers (HIMS) PT Lowered to $12.50 at BofA Securities

BofA Securities analyst Allen Lutz lowered the price target on Hims and Hers (NYSE: HIMS) to $12.50 (from $13.00) while maintaining a Underperform rating.

The analyst comments "HIMS reported a mixed quarter with revenue and subscribers falling below the Street and adjusted EBITDA exceeding the Street's expectation (link to our first take here). The 2026 revenue growth guidance assumes an incremental $350-$550MM of revenue growth ex-Eucalyptus. We struggle to get to the low end of this guidance range, even after applying generous assumptions to the GLP-1 business and new launches in the U.S (Exhibit 1). We expect the GLP-1 business to contract in 2026 and flag the notable shift of GLP-1s to other DTC channels as a growing headwind (link to our GLP-1 monthly note). On margins, it makes sense for HIMS to invest and run the International business at breakeven for a multi-year period, but it will put pressure on consolidated margins relative to Street expectations. Lastly, we view the current litigation risk from FDA/Novo Nordisk and now SEC as somewhat similar to the opioid litigation placed on drug distributors several years ago. This litigation uncertainty ultimately drove sustained multiple compression for distributors until the litigation was resolved – something we see as a reasonable base case for HIMS. We reiterate our Underperform and lower our PO to $12.50 from $13, still based on 15x ’26E EBITDA (excluding contributions from GLP-1s and potential liabilities from litigation)."

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