Hims and Hers stock soars 10% after analyst upgrades rating

Investing.com – Hims and Hers (NYSE:HIMS) stock rose 10% on Tuesday, continuing a 49% increase from Monday, after the company announced a partnership with Novo Nordisk (NYSE:NVO). Several analysts subsequently upgraded their ratings.

The partnership was announced on Monday and allows Hims and Hers to sell commercial doses of Ozempic and Wegovy, including a new pill form, as part of a new strategy involving GLP-1 weight loss treatments. As part of the agreement, Novo Nordisk withdrew its lawsuit against Hims and Hers.

Bank of America Securities analyst Allen Lutz upgraded Hims and Hers from Underperform to Neutral, raising the target price from $12.50 to $23.00. The target price was increased to reflect a 23x EV/EBITDA multiple for the 2026 calendar year, now including GLP-1 revenue.

Citi analyst Daniel Grosslight also upgraded the stock to Neutral, raising the target price from $13.25 to $24. He noted that the partnership requires Hims and Hers to cease large-scale personalized customization, with only a limited customer base allowed to continue using compounded GLP-1. The analyst added that Novo Nordisk’s withdrawal of the lawsuit “significantly reduces legal risk.”

On Monday, Needham analyst Ryan MacDonald upgraded Hims and Hers from Hold to Buy, with a target price of $30.00, stating that the partnership alleviates legal risk concerns and fundamentally changes the company’s weight loss business and overall growth model.

The partnership allows Hims and Hers to fill revenue gaps created by compounded GLP-1 through its brand collaborations, although the company’s compounded business will face restrictions.

The stock closed Monday at $22.16.

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