JPMorgan Initiates Hims & Hers Coverage at Neutral, Cites GLP-1 Transition Risk

JPMorgan has initiated coverage of Hims & Hers Health (NYSE: HIMS) with a Neutral rating, citing execution risks associated with the company's strategic shift into branded weight-loss drugs even as it acknowledges significant growth potential. The bank set a December 2027 price target of $32 per share for the direct-to-consumer health platform.

The GLP-1 Pivot

In a research note, JPMorgan analyst Bryan Smilek detailed the company's crucial transition in its weight-loss business. Hims & Hers announced in March it would prioritize branded, FDA-approved medications and cease advertising its compounded GLP-1 offerings. This move is anchored by a key partnership with Novo Nordisk to supply its popular drug, Wegovy.

The early results of this partnership appear promising. According to the note, Hims fulfilled more than 125,000 Wegovy shipments within the first six weeks of the launch. JPMorgan stated its belief that the Novo Nordisk collaboration should "more than offset compounded GLP-1 headwinds," and projected the company's GLP-1 revenue could reach $1.1 billion in 2026.

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Growth Outlook vs. Execution Risk

JPMorgan highlighted a substantial market opportunity, estimating that the number of U.S. cash-pay GLP-1 users could grow from about 2.8 million today to more than 8 million by 2030. This market expansion supports Hims & Hers' own long-term targets of achieving over $6.5 billion in revenue and more than $1.3 billion in adjusted EBITDA by 2030.

Despite the positive outlook, the Neutral rating reflects a wait-and-see approach. The analyst wrote that while JPMorgan is positive on the company's vertical integration and brand scale, it wants to see successful execution on the branded GLP-1 transition, durable growth in newer specialties, and clear margin expansion before adopting a more bullish view.