Hims & Hers Health stock rallied on Canaccord Genuity’s raised price target of $40, marking the Street-high call for the telehealth company. Analyst Maria Ripps lifted the target from $32 while maintaining a Buy rating, citing the company’s progress in transitioning from compounded to branded weight loss drugs and strong partnerships with major pharmaceutical players.
The stock currently trades at $34.67, with analyst targets ranging from $21 to $40, reflecting divergent views on the company’s valuation and growth prospects. HIMS shares rose approximately 67% in the second quarter alone, signaling strong investor confidence in the company’s strategic direction.
Momentum from Strategic Partnerships and Sales Growth
Hims’ transition from compounded to branded weight loss drugs has gained traction following its March 2026 collaboration with Novo Nordisk. Jamey Millar, EVP of US operations at Novo, recently described Hims as one of Novo’s most “voluminous” telehealth partners, underscoring the strength of their relationship and the volume of branded GLP-1 prescriptions flowing through the platform.
Credit card data tracked by analysts showed accelerating sales momentum throughout Q2. Adjusted year-over-year sales improved consistently from mid- to high-single digits in April to high teens in June, demonstrating strengthening demand as the company pivots to branded medications. The company posted revenue of $2.37 billion over the last twelve months with 33% growth and a 73% gross profit margin, according to analyst reports.
Recent corporate actions support the growth narrative. Hims introduced generic semaglutide for Canadian customers in late May and completed the acquisition of Eucalyptus in early June, expanding its capabilities in the weight loss and telehealth space. These moves position the company to capture a larger share of the growing GLP-1 market as regulatory clarity improves.
FDA Regulatory Developments and Market Opportunity
The FDA’s stance on peptide compounding may create a tailwind for branded GLP-1 suppliers like Novo Nordisk and their telehealth partners. Seven of the twelve peptides referred to the Pharmacy Compounding Advisory Committee are scheduled for FDA review on July 23-24. The FDA has recommended against allowing compounding pharmacies to legally manufacture these peptides, a move that could redirect patient demand toward branded alternatives available through platforms like Hims.
The regulatory environment has shifted significantly since early 2026, when Hims faced legal challenges over its compounded GLP-1 offerings. The company’s strategic pivot to partnerships with branded drug makers and away from compounded versions has positioned it favorably as the regulatory landscape becomes clearer. Medicare’s July 1, 2026 launch of its GLP-1 Bridge Program, which covers select branded GLP-1 medications at $50 per month for eligible beneficiaries, also expands the addressable market for Hims’ offerings.
Sources
- Investing.com — Canaccord’s price target raise from $32 to $40, analyst Maria Ripps’ Buy rating, stock price and target range, Q2 67% rally, Novo partnership details, and credit card sales data
- TipRanks — Confirmation of Canaccord’s $40 price target raise from $32 and Buy rating maintenance
- Investors.hims.com — Strategic shift announcement regarding weight loss business transition and Novo Nordisk collaboration in March 2026
- Investing.com Analyst Research — Company revenue ($2.37B LTM), 33% growth rate, 73% gross profit margin, Eucalyptus acquisition completion in early June, and generic semaglutide launch in Canada in late May
- CMS and Medicare Rights Center — Medicare GLP-1 Bridge Program details and July 1, 2026 launch date
