Hims & Hers Health (NYSE:HIMS) shares climbed about 10% on Tuesday, extending Monday’s sharp rally of nearly 49% after analysts upgraded the stock following the company’s newly announced partnership with Novo Nordisk (NYSE:NVO).
The collaboration, unveiled Monday, enables Hims & Hers to offer commercially available doses of Ozempic and Wegovy—including a newly developed pill formulation—as part of an expanded weight-loss treatment strategy centered on GLP-1 therapies. As part of the agreement, Novo Nordisk has also withdrawn its lawsuit against Hims & Hers.
BofA Securities analyst Allen Lutz upgraded the stock from Underperform to Neutral and raised his price target to $23.00 from $12.50. The revised valuation reflects a 23x CY26E EV/EBITDA multiple that now factors in expected GLP-1-related revenue.
Citi analyst Daniel Grosslight also lifted his rating to Neutral and increased his price target to $24 from $13.25. Grosslight noted that the agreement requires Hims & Hers to end its mass-personalization model, allowing only a limited group of customers to remain on compounded GLP-1 treatments. He also said Novo Nordisk dropping the lawsuit “significantly diminishes legal risk.”
Earlier, Needham analyst Ryan MacDonald upgraded the stock from Hold to Buy with a $30.00 price target, saying the partnership removes key legal overhangs and materially reshapes the company’s weight-loss strategy and long-term growth outlook.
The agreement also allows Hims & Hers to offset potential revenue losses tied to compounded GLP-1 medications by replacing them with branded offerings through its partnership with Novo Nordisk, although the company will face tighter limits on its compounding operations.
Hims & Hers shares finished Monday’s session at $22.16.