Hims & Hers Health Inc. (HIMS) experienced a significant intraday surge of 6.22% on Friday, as the stock opened sharply higher.
The rally was primarily driven by J.P. Morgan initiating coverage on the telehealth company with an "overweight" rating and a $35 price target. Analysts highlighted the potential for the Novo partnership to remove legal overhang and position the firm as a comprehensive platform. They also noted the company's weight loss specialty could grow further this year, supported by a more stable GLP-1 business, potential peptide legalization, and expected revenue reacceleration in the second half.
Adding to the positive sentiment, the company's platform has fully launched multiple FDA-certified GLP-1 drugs, including Eli Lilly's Zepbound. Furthermore, a potential regulatory shift by the U.S. FDA to relax restrictions on peptide injectable drugs could open new revenue streams for the digital health platform, which boasts over 2.5 million subscribers.
Comments