HIMS Stock Could Rally Up To 60% This Week? Fund Manager Says He Wouldn’t Be ‘Surprised’ As Novo Nordisk Patch-Up Buzz Grows

Lupton Capital CEO Jonah Lupton said the potential agreement could include both injectable and oral GLP-1 drugs.

• The reported deal could see Novo Nordisk sell its weight-loss drugs through Hims’ telehealth platform.
• A potential partnership may end a recent legal feud between the companies, though neither firm has confirmed the partnership.
• Lupton Capital CEO Jonah Lupton said the stock could rally 50-60% this week, citing short covering.

Shares of Hims & Hers Health, Inc. (HIMS) surged about 20% in overnight trading on Sunday as reports of a potential partnership with Novo Nordisk fueled optimism, with a fund manager saying the stock could climb up to 60% on short covering.

HIMS stock ended nearly 1% lower on Friday but surged nearly 40% in extended trading after the report on the deal with Novo Nordisk.

Novo Nordisk-Hims Deal Buzz Lifts Stock

The rally follows a report that Novo Nordisk plans to sell its weight-loss drugs through Hims & Hers’ telehealth platform, potentially ending a public dispute between the two companies that escalated into a legal battle over the last few months. The companies could reportedly announce the partnership as soon as Monday, although neither firm has confirmed the reported tie-up.

Fund Manager Sees 60% Upside For HIMS

Jonah Lupton, CEO and CIO of Lupton Capital, said on X that “I would not be surprised if $HIMS is up 50-60% next week on the $NVO news plus short covering.” Short interest in Hims stands at a record 35.5% of the float, according to Koyfin.

Lupton said the potential deal could include Novo’s injectable and oral GLP-1 drugs. He added the stock could re-rate from about 12x next-twelve-month (NTM) EBITDA (earnings before interest, taxes, depreciation, and amortization) to around 20x NTM EBITDA if analysts raise earnings estimates for 2026 and 2027.

He also said the news strengthens the outlook for Hims’ Eucalyptus acquisition and highlighted peptides, which are short chains of amino acids used in various treatments, as a potential growth area. Lupton noted recent comments by U.S. Health Secretary Robert F. Kennedy Jr. about reviewing restrictions on certain peptides could pave the way for Hims to launch a peptide business generating about $1 billion in annual revenue within two to three years.

Novo Legal Battle With Hims Takes New Turn

The reported tie-up would mark a surprising reversal after Novo Nordisk sued Hims & Hers Health last month over a copycat version of its Wegovy weight-loss pill, accusing the telehealth firm of infringing U.S. patents tied to blockbuster drugs Wegovy and Ozempic. 

The potential partnership also comes as Hims faces regulatory scrutiny over compounded weight-loss drugs. The U.S. Food and Drug Administration (FDA) recently issued warning letters to about 30 telehealth companies over misleading marketing tied to compounded GLP-1 drugs such as Semaglutide, Tirzepatide and Liraglutide, which are the active ingredients in Novo’s Wegovy and Ozempic and Eli Lilly’s Zepbound and Mounjaro.

A Novo spokesperson told Bloomberg that the company is “always in conversation with companies that can help improve patient access to FDA-approved medicines for people living with chronic diseases.”

The companies had previously partnered, and the arrangement ended last year after Novo ended it after Hims continued marketing compounded GLP-1 medications.

Leerink Flags Positive Catalyst For Hims

Leerink Partners said that the development would be positive for Hims if confirmed. “There is no other way to describe the Hims news as both a surprise and an unabashed positive for Hims’ stock.” 

Leerink said Novo has been expanding distribution partnerships to broaden access to its obesity treatments. “We get the rationale for Novo here,” the firm said, citing deals with digital pharmacies and CVS.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment for HIMS was ‘extremely bullish’ amid an 840% surge in message volumes over the past week.

One user said Hims “will make the craziest comeback you’ve ever seen. Watch it.”

Another user expects the stock to “test $16 by the market open and around 10 am will fly ( mark my word).”

HIMS stock has shed half of its value so far this year.

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