HIMS Stock Jumps 14% – Barclays Says Market Is Underestimating Opportunity From New Products

Brokerages have turned bullish on HIMS since its deal with Novo Nordisk earlier this week, with Barclays raising the stock’s price target to $29.

• Barclays said the rally reflects growing market opportunities and removes a key legal uncertainty that had weighed on the stock.
• Earlier, Needham said that the rally still undervalues HIMS’ revenue potential.
• HIMS shares have rallied more than 73% so far this week. 

Shares of Hims & Hers Health jumped more than 14% on Wednesday, extending a powerful rally that has lifted the stock about 73% this week after Barclays turned bullish on the company’s growth prospects, driven by new products.

Barclays raised the stock’s price target to $29 from $25 and maintained an ‘Overweight’ rating, according to The Fly. This implies an 8% from its current trading price. The firm stated that the rally following the agreement with Novo Nordisk reflects growing market opportunities for Hims & Hers Health and removes a key legal uncertainty that had weighed on the stock.

Barclays added that the market is still “underappreciating Hims’ opportunity from new products.”

Novo Deal Removes Legal Overhang

HIMS stock has been trending up since Monday after the company partnered with Novo Nordisk to offer the weight-loss and diabetes drugs Ozempic and Wegovy on its platform. Hims & Hers said it will stop advertising compounded GLP-1 drugs on its platform and in marketing materials.

The agreement comes as the U.S. Food and Drug Administration (FDA) ramped up pressure on telehealth companies over the marketing of compounded GLP-1 medications.

As part of the agreement, Novo Nordisk also dropped its patent infringement lawsuit against the company. Novo Nordisk had sued Hims & Hers in February, alleging the company misled consumers and healthcare professionals about the benefits and safety of unapproved drugs.

Earlier, Needham said the stock’s recent move still undervalues the company’s revenue potential, noting that cash-pay demand for Wegovy pills has not yet been factored into the company’s current outlook.

How Did Stocktwits Users React?

Retail sentiment on Stocktwits has remained ‘extremely bullish’ over the past 24 hours, accompanied by ‘extremely high’ message volumes.

One user said the stock is “ridiculously undervalued.”

However, another user speculated on a possible stock offering.

HIMS shares have dropped 20% so far this year.

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