Hims & Hers Health Inc ( HIMS ) shares are higher Wednesday morning after a series of announcements this week reinforced investor optimism around the company's weight-loss strategy and broader platform expansion. Here’s what investors need to know.
Hims & Hers Health ( HIMS ) stock is surging to new heights today. What’s driving HIMS stock higher?
The biggest catalyst was a new partnership with Novo Nordisk A/S ( NVO ) that will bring branded GLP-1 treatments including Ozempic and Wegovy to the Hims & Hers platform later this month, while also ending Novo's lawsuit against the telehealth company. That removes a legal overhang and signals a more collaborative relationship with a major drugmaker.
Hims & Hers also said it is shifting its U.S. weight-loss business away from actively advertising compounded GLP-1 drugs and toward a wider assortment of FDA-approved treatments.
Existing patients may transition to branded therapies when providers determine that is clinically appropriate, while compounded offerings are expected to remain available only on a limited basis for select cases.
Analyst sentiment improved after the Novo announcement. Citigroup upgraded the stock to Neutral from Sell and lifted its price target to $24 from $13.25, while Bank of America also upgraded shares to Neutral and raised its target to $23 from $12.50.
Separately, Hims & Hers launched a new subscriber benefits program offering discounts on services and products from partners including Prenuvo and Eight Sleep, broadening its wellness ecosystem beyond prescriptions alone.
Hims & Hers stock has been in a broad downtrend from its late-summer peak of $66.18, falling below its 20-day, 50-day and 200-day moving averages before a sharp rebound this week.
Even with that bounce, the shares remain well off their highs, suggesting the longer-term trend is still weak.
According to Benzinga Edge rankings, Hims & Hers Health Inc. ( HIMS ) shows a Growth score of 56.09 but a weak Momentum score of 1.23, highlighting strong expansion metrics despite poor recent trading momentum.
HIMS Price Action: Hims & Hers Health ( HIMS ) shares were up 12.78% at $26.47 at the time of publication on Wednesday, according to Benzinga Pro data.
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