BUZZ-BofA cuts PT on Hims & Hers, cites near-term pressure from branded GLP-1 shift

Reuters04-08 22:30
BUZZ-BofA cuts PT on Hims & Hers, cites near-term pressure from branded GLP-1 shift

** Brokerage BofA Global Research cuts PT on telehealth provider Hims & Hers Health HIMS.N to $21 from $23

** New PT represents 7.7% upside to stock's last close

** BofA says co's shift to branded GLP-1 drugs and bigger international revenue mix should pressure near-term margins but could support more durable business over time

** Notes its 2026 EBITDA forecast is about 20% below Wall Street consensus and estimated GLP-1 EBITDA contribution could fall about 50% year over year

** Estimates HIMS can convert 40% to 50% of existing GLP-1 subscribers to branded products, while 5% to 10% remain on compounded treatments

** Shift will result in roughly $60 million to $90 million in quarterly GLP-1 revenue, plus 5,000 to 10,000 new branded subscribers per quarter - BofA

** BofA says HIMS aims to grow international business to more than $1 billion over three years, with Eucalyptus expected to be the biggest contributor after deal closing in mid-2026

** HIMS stock is down 50.5% YTD

(Reporting by Padmanabhan Ananthan)

((Padmanabhan.Ananthan@thomsonreuters.com))

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