Hims & Hers price target slashed amid GLP-1 transition

Proactive

Wed, April 8, 2026 astatine 11:25 AM CDT 2 min read

Bank of America lowered its 2026 terms people for Hims & Hers (NYSE:HIMS) to $21 from $23, citing adjacent aggregate compression and near-term net pressures.

Shares of Hims & Hers traded hands astatine astir $20 connected Wednesday, down astir 39% truthful acold this year.

The steadfast reiterated a ‘Neutral’ rating, noting important uncertainty and imaginable downside for near-term EBITDA.

The analysts projected 2026 EBITDA could travel successful astir 20% beneath Street statement and estimated GLP-1 EBITDA contributions mightiness autumn by arsenic overmuch arsenic 50% year-over-year.

They highlighted that the company’s displacement to branded GLP-1 offerings and planetary enlargement is expected to measurement connected margins.

“Ultimately, the displacement to branded whitethorn make a much sustainable platform, but with a borderline headwind near-term arsenic caller investments request to beryllium repurposed oregon coiled down,” the analysts wrote.

Despite near-term borderline concerns, Bank of America cited imaginable maturation successful the branded segment. The analysts wrote that the $149-per-month branded GLP-1 program has the imaginable to make EBITDA per subscriber akin to compounded offerings implicit time, but emphasized that occurrence volition beryllium connected however galore customers power from the low-cost model.

They estimated Hims & Hers could person 40% to 50% of existing subscribers to branded plans and clasp 5-10% connected compounded offerings, generating astir $60 cardinal to $90 cardinal successful quarterly GLP-1 revenue, on with further maturation from cash-pay subscribers.

International enlargement was besides highlighted arsenic a maturation avenue. Hims & Hers aims to turn its planetary concern to implicit $1 cardinal successful the adjacent 3 years, with a mid-teens integrated CAGR.

Bank of America’s checks connected the Eucalyptus level indicated that astir 90% of gross is expected from branded GLP-1 distribution, operating astatine astir 40% gross margins.

The analysts added that “a half-year of Eucalyptus contributions could beryllium a 1 to 2 percent constituent EBITDA borderline headwind for HIMS assuming Eucalyptus is operating astatine a debased single-digit EBITDA borderline loss,” but noted imaginable for borderline betterment implicit time.