Telehealth company Hims & Hers has limited near-term upside potential, according to TD Cowen. The firm downgraded shares to hold from buy in a Tuesday note. Analyst Jonna Kim also lowered her price target to $30 per share from $44, which indicates shares gaining just 5.3% from Monday’s close. The “stock could be range-bound in a post GLP-1 shortage world,” Kim said in the research note. “Near-term upside may be limited, but we like the story for the long-term as HIMS remains committed to making healthcare accessible for all.” GLP-1 medications treat diabetes and obesity and had been in shortage due to heavy demand. Although the analyst expects strong first-quarter results due to compounded demand for weight loss drugs, she believes the remainder of the year looks difficult. Hims & Hers will not be selling compounded versions of Wegovy and Ozempic after May 22, following the Food and Drug Administration’s announcement that the GLP-1 shortage is over. Unless current GLP-1 users opt to switch to other oral medication options such as Liraglutide — in addition to the likelihood of users looking elsewhere for GLP-1 options — Him & Hers’ current 2025 weight loss revenue guidance appears overly optimistic, according to Kim. In addition, “recession risk and muted consumer demand could be factors to monitor,” Kim said. Year to date, shares of the telehealth company have advanced nearly 18%. The stock has soared about 127% over the last 12 months. —CNBC’s Michael Bloom contributed to this report.
