JPMorgan starts Hims & Hers at Neutral

JPMorgan initiated coverage of Hims & Hers Health with a Neutral rating on Friday. The investment bank set a December 2027 price target of $32. Analyst Bryan Smilek balanced the direct-to-consumer health platform's rapid expansion against execution risks during its shift toward branded weight-loss drugs.

Hims & Hers has about 2.9 million subscribers across categories such as weight loss, hair loss, and women's health. In March, the company decided to prioritize FDA-approved medications and end advertising for compounded GLP-1 products. Under an agreement with Novo Nordisk, Hims & Hers completed more than 125,000 Wegovy shipments in the first six weeks following launch.

Smilek expects GLP-1 revenue to rise 46% to $1.1 billion in 2026 as branded volume growth counteracts lower compounded drug sales. JPMorgan estimates the number of cash-paying GLP-1 patients in the United States will rise from about 2.8 million today to more than 8 million by 2030.

For 2030, Hims & Hers targets revenue above $6.5 billion and adjusted EBITDA exceeding $1.3 billion. The company plans to reach these targets through international expansion, peptides, and artificial intelligence efficiencies. Smilek said he is waiting for clear proof of margin expansion, execution on branded GLP-1 drugs, and lasting progress in new treatment categories.