HIMS-Novo ‘Can’t Quit Each Other’ – Bulls Rally on Wegovy Deal

Hims & Hers HIMS +5.91% ▲ shares have been on a tear, up 49% since announcing a deal to sell Novo Nordisk’s NVO -2.66% ▼ weight-loss drugs Wegovy and Ozempic on its telehealth platform. Wall Street analysts are buzzing with optimism over the partnership, which ends a long-standing feud between the two companies that escalated into a legal battle.

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Hims & Hers Health offers convenient healthcare solutions like prescription meds, wellness items, and virtual doctor visits. Novo Nordisk is a Danish pharmaceutical giant, popular for its obesity and GLP-1 (Glucagon-Like Peptide-1) drugs. Let’s briefly understand analysts’ views on the deal.

Bulls Weigh In on HIMS-NVO Deal

Citi analyst Daniel Grosslight upgraded HIMS stock from a Sell rating to a Hold, while also lifting the price target from $13.25 to $24 (2.3% upside). He highlighted the renewed Novo Nordisk partnership as a key de-risking factor, noting that Novo has dropped its lawsuit against HIMS, sharply reducing legal risks. Grosslight now takes a more constructive view on HIMS stock.

Deutsche Bank’s George Hill maintained his Hold rating but raised his price target from $25 to $28, implying 19.3% upside. The price target increase reflects Hims & Hers’ new partnership with Novo Nordisk and its shift away from compounded semaglutide in GLP-1 weight-loss offerings.

Bank of America Securities analyst Allen Lutz upgraded HIMS from a Sell rating to Hold, and lifted his price target from $12.5 to $23 (2% downside potential). Lutz noted that Novo’s decision to drop the lawsuit against HIMS is a “clear positive” that eliminates litigation and credit risks. Although his estimates remain well below Street consensus for 2026-2027 revenue and EBITDA (earnings before interest, taxes, depreciation, and amortization), he views the current risk/reward profile as balanced.

Needham analyst Ryan MacDonald upgraded HIMS to a Buy rating from Hold with a price target of $30, suggesting 27.8% upside. He noted that HIMS can now sell official Ozempic and Wegovy doses, including the new pill version. Plus, the partnership cuts legal risks. MacDonald thinks this opens big new revenue from cash-pay Wegovy pills, which were not included in his prior outlook. The partnership reshapes HIMS’ weight-loss business and growth path.

Is HIMS a Good Long-Term Investment?

On TipRanks, HIMS shares have a Moderate Buy consensus rating based on four Buys and 10 Hold ratings. The average Hims & Hers price target of $27.05 implies 15.3% upside potential from current levels. Over the past year, HIMS stock has fallen 32.4%.

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