Hims & Hers Health previously launched GLP-1, a weight loss injection, which is 85% lower than NVO.US (NVO.US) Wegovy per dose. The stock has since risen sharply.
The Zhitong Finance App learned that after the stock price rose sharply, Citi downgraded Hims & Hers Health (HIMS.US) from “buy” to “neutral,” and stated that after increasing the value of the enterprise by about 760 million US dollars, the stock “has little room to rise.” However, Grosslight raised Hims's price target from $16 to $20 per share to reflect the new revenue stream associated with the company's GLP-1 offering.
The company previously launched GLP-1, a weight loss injection, which is 85% lower per dose than Novo Nordisk (NVO.US)'s Wegovy. The stock has since risen sharply.
Analyst Daniel Grosslight pointed out that since the company announced its decision to sell new GLP-1 products on Monday, Hims's stock price has risen 20%. Currently, this drug is in short supply due to soaring demand.
“The bigger question on our mind, though, is what will happen when GLP-1 is no longer in short supply?” the analyst added. “In our opinion, it will be much more difficult for Hims to achieve compound growth at that point, which poses a great deal of uncertainty about the durability of this profit stream.”