⚈ The title Hims increased by 45% after announcing a partnership with Novo Nordisk to offer Wegovy via its platform.
⚈ The move is positioned and its own to capitalize on the booming demand for weight loss drugs.
⚈ Despite the media threshing, analysts lowered the stock, citing a limited short -term increase.
The actions of Hims & Hers Health (NYSE: HIMS) soar while investors react to the news of the company's partnership with Novo Nordisk (NYSE: NVO), the manufacturer of weight products and diabetes drugs Wegovy and Ozempic.
In pre-commercial exchanges on Tuesday, April 29, Hims increased up to $ 45%. Although the momentum has cooled after the market opened, the action up 26% to $ 36.17 at the time of the press.
These short -term gains have helped Hids & Hers Health to record a 43% increase in the year up to date.
Why the stock of Hims bursts
The wave followed the news that the two companies have joined forces with the provision of Wegovy via the Hims & Hers platform, expanding access to one of the most requested weight loss drugs on the market.
The American company will now offer prescriptions for medication from $ 599 per month via Novocare Pharmacy. Previously, Wegovy was only available through local pharmacies or the Novocare pharmacy program in Novo.
The partnership unlocks a new source of potentially massive income for Hims & Hers, which has constantly developed its subscription -based health offers. By integrating Wegovy into its platform, the company could operate the booming market of GLP-1 GLP-1.
Hims Stock struck with Wall Street gradients
While the announcement feeds the growth trajectory of Hims & Hers, a certain caution is justified.
A large part of the action price move seems to be speculative, and the stock could refresh itself after the initial euphoria, especially given the demotion of Wall Street analysts on April 29 before the partnership was made public.
For example, Morgan Stanley lowered his HIMS lens from $ 60 to $ 40 while maintaining an “equal weight” note. According to the bank, strong underlying commercial trends suggest that the stock could be attractive after its recent decline. However, he highlighted the need for clear progress in the main HIMS activities and greater visibility in his weight loss income to move negative feeling.
TD Cowen also lowered it to “keep” to “buy”, reducing its goal to $ 30, compared to $ 44. The firm warned against the limited increase, citing the end of the availability of GLP-1 composed after May 22 and intensifying competition. TD also questioned the achievement of the weight loss income target of $ 725 million in the company in the midst of the uncertain transitions of patients to other drugs.
Finally, Citi reaffirmed its “sale” note and reduced its price target from $ 27 to $ 25, adding a “30 -day drop” view. While the bank expects another beat of earnings, Citi has reported risks linked to the slowdown in basic income growth, the personalized Hims Personalized GLP-1 strategy and wider opposite winds of consumers and policies that can pressure stock despite positive titles.
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