Key Takeaways
- In March 2026, Hims & Hers transitioned away from compounded semaglutide to FDA-approved branded GLP-1 medications
- Bank of America lowered its price target to $21 from $23 while maintaining a Neutral/Hold stance
- Analysts project GLP-1 EBITDA contributions may decline by 50% compared to last year
- Eli Lilly’s oral GLP-1 medication Foundayo launched on Amazon Pharmacy, intensifying competitive pressures
- Year-to-date, HIMS shares have declined nearly 39%, hovering near the $20 mark
In March 2026, Hims & Hers executed a strategic overhaul by discontinuing compounded semaglutide in favor of FDA-sanctioned branded GLP-1 therapies. Management characterized this shift as positioning the firm to become “the largest global consumer health platform for access to more affordable, approved medications.”
Hims & Hers Health, Inc., HIMS
This strategic realignment came after a legal confrontation with Novo Nordisk. The resolution required Hims & Hers to distribute Novo Nordisk’s authorized GLP-1 products instead of less expensive compounded alternatives.
Investors have punished the shares significantly. HIMS has shed approximately 39% of its value in 2026 through Wednesday, with shares trading near $20.
This week, Bank of America’s Allen Lutz reduced his price objective on HIMS to $21 from $23. He maintained his Neutral assessment, pointing to compression in peer valuations and short-term profitability headwinds.
Lutz forecasted 2026 EBITDA could land approximately 20% beneath consensus Wall Street projections. His analysis also suggests GLP-1-related EBITDA contributions might plunge as much as 50% on a year-over-year basis.
However, Lutz indicated his team holds “slightly more optimistic” views regarding the company’s overseas expansion strategy. He highlighted that the $149 monthly branded GLP-1 offering could potentially achieve margins comparable to compounded products eventually, contingent on subscriber migration rates.
Subscriber Migration Rate Will Be Critical
Bank of America’s modeling anticipates Hims & Hers could successfully transition 40% to 50% of current subscribers to branded plans, while maintaining 5% to 10% on compounded alternatives. This scenario would yield approximately $60 million to $90 million in quarterly GLP-1 revenue.
The company has also set ambitious international growth objectives. Management targets expanding this segment beyond $1 billion in revenue over the next three years, with mid-teens organic compound annual growth rates. Bank of America’s due diligence on the Eucalyptus platform indicates roughly 90% of revenue will derive from branded GLP-1 distribution at approximately 40% gross margins.
Canaccord’s Maria Ripps struck a more optimistic tone. She maintained her Buy recommendation, contending the Novo Nordisk collaboration represents a “long-term tailwind” opportunity. Ripps argued the market undervalues the telehealth infrastructure, customer base, and broadening therapeutic offerings.
Amazon Entry With Foundayo Increases Competitive Heat
Competitive dynamics intensified Thursday when Amazon Pharmacy revealed plans to distribute Eli Lilly’s recently authorized oral GLP-1 medication, Foundayo, featuring same-day delivery capability. HIMS slipped 0.5% following the announcement. Novo Nordisk dropped 1.5%.
Foundayo represents a once-daily oral therapy for adults managing obesity or overweight conditions with related health complications. Pricing begins at $25 monthly with insurance coverage, or $149 monthly for self-pay patients.
Amazon plans same-day delivery across nearly 3,000 cities initially, expanding to 4,500 locations by year’s end. The e-commerce giant noted it has dispensed GLP-1 medications since 2021, with customers saving over $200 million through automatic coupon programs, where GLP-1 drugs represent the largest savings category.
Wall Street’s consensus view on HIMS stands at Moderate Buy, based on four Buy ratings and 10 Hold ratings issued over the past three months. The average analyst price target of $26.36 suggests approximately 36% upside potential from current trading levels.
