BofA on Hims and Hers (HIMS): '$149/month subscription fee is slightly higher than we initially expected'

BofA Securities analyst Allen Lutz reiterated a Neutral rating and $23.00 price target on Hims and Hers (NYSE: HIMS)

The analyst comments "HIMS’ $149/month subscription fee is slightly higher than we initially expected and modestly above peer Ro at $145/month (Exhibit 1). There are still a few unknowns including whether or not there is a standalone medicine margin or how CACs will compare with compounded semaglutide. However, we believe it is reasonable to assume HIMS is pricing this subscription with a goal to maintain economics relative to its compounded alternative (Exhibit 2). Ultimately the shift from compounded semaglutide to branded is likely to create some volatility in subscriptions and we will continue to monitor alternative data. Today, we estimate HIMS’ GLP-1 franchise will contract by 31% in 2026, though that number could be optimistic as HIMS moves from a position of a low cost provider to an average cost provider of GLP-1 medications. Maintain Neutral."

For an analyst ratings summary and ratings history on Hims and Hers click here. For more ratings news on Hims and Hers click here.

Shares of Hims and Hers closed at $20.84 yesterday.

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