Hims & Hers Health stock climbed in early trading after Canaccord Genuity raised its price target on the telehealth provider to $40 from $32, a level the firm described as the highest on the Street, and reiterated a Buy recommendation. The move coincided with a roughly 5.2% advance in the shares during morning hours.
The Canaccord note attributed the upward revision to several factors, including improving consumer spending data and what the analyst characterized as a stronger-than-expected rollout of branded weight-loss medications. The research team also flagged Hims’ peptide business as a potentially significant long-term driver for revenue growth.
According to the note, Hims shares had already gained about 67% in the second quarter as the company shifted away from compounded GLP-1 therapies toward branded offerings after forming a partnership with Novo Nordisk. In commentary cited by the note, Novo Nordisk’s executive vice president described Hims as one of its most "voluminous" telehealth partners, underscoring the scale of the collaboration.
Corporate developments have added to the favorable narrative. Hims completed its acquisition of Eucalyptus in early June, a deal that expanded the company’s footprint into additional international markets. Market participants are also focused on an upcoming FDA advisory committee meeting scheduled for July 23-24, during which advisors could vote on allowing pharmacies to compound certain peptides - a regulatory outcome that, if favorable, could open a new product category for Hims.
Market conditions outside the company offered little support for the move. The broader indices were trading lower during the same session, with the S&P 500 down about 0.4%, the Dow Jones Industrial Average off roughly 0.1% and the Nasdaq falling near 0.7%. Hims’ advance therefore stood out against a modestly negative tape, highlighting the role of company-specific developments in driving the stock’s performance.
Not all analysts share Canaccord’s optimism. Leerink maintained a Market Perform rating and a $25 price target, a stance noted in published commentary as reflective of divisions within the analyst community about the firm’s longer-term valuation prospects.
On the session, Hims traded above its previous close of $34.67 and reached an intraday high of $36.35, according to market data cited in the coverage.
What to watch next
- The outcome of the FDA advisory committee meeting on July 23-24 regarding pharmacy compounding of certain peptides.
- Execution on branded weight-loss drug rollouts and continued performance of the peptide business.
- Market reaction to any further analyst revisions that reflect differing views on valuation.
Bottom line
Hims & Hers’ stock moved higher on a combination of a bullish price-target reset from Canaccord, momentum from its shift to branded weight-loss therapies, progress on international expansion via the Eucalyptus acquisition and investor attention on a pending regulatory decision that could materially affect product offerings.