⚈ HIMS shares rose to 45 % after announcing a partnership with Novo Nordisk to introduce Wegov through its platform.
⚈ This step places Hims & its salary to take advantage of the prosperous demand for weight loss.
⚈ Despite the noise, analysts reduced the classification of stocks, citing a short -term limited limit.
HIMS & HERS Health (NYSE: HIMS) shares rise where investors interact with news about the company’s partnership with Novo Nordisk (NYSE: NVO), weight loss maker, diabetes drugs, Wagovi and OzemPic.
In pre -market trading on Tuesday, April 29, HIMS had increased to 45 % to $ 41. Although the momentum was cooled after the market was opened, as the stock rose by 26 % to $ 36.17 at the time of the press.
These short -term gains helped shake in a 43 % increase.
Why the hems stocks erupt
The Gurge has followed news that the two companies cooperated to make Wegovy available through the Hims & HERS platform, and expanding access to one of the most highly weight loss medications in the market.
The American company will now offer drug recipes starting from $ 599 per month via Novocare Pharmacy. Previously, Wegovy was only available through local pharmacies or from Novo’s Novocare Pharmacy.
The partnership cancels a possible new HIMS & HERS revenues, which was steadily growing its subscription health offers. By integrating Wegovy into its platform, the company can take advantage of the prosperous market for the GLP-1 weight loss.
HIMS inventory with Wall Street discounts
While the advertisement feeds the HIMS & HERS growth path, some caution is justified.
It seems that a lot of stock price step is speculative, and the stock may cool after the initial euphoria, especially given that many Wall Street analysts reduced its classification on April 29 before the partnership was published.
For example, Morgan Stanley has reduced its target price from $ 60 to $ 40 while maintaining a “equal weight” classification. According to the bank, basic strong business trends indicate that the stock may be attractive after its last decline. However, he emphasized the need for clear progress in the basic HIMS works and increased clarity in weight loss revenues to change negative spirits.
TD Cowen also reduced its “Hold” classification of “Buy”, cutting its goal to $ 30 from $ 44. The company warned of the limited upward trend, noting the end of the complex GLP-1 available after May 22 and intensify the competition. TD also questioned the goal of the company’s 725 million dollars, amid unconfirmed transitions to other drugs.
Finally, Citi reaffirmed its classification “selling” and reduced its target price from $ 27 to $ 25, adding a “moderate for 30 days”. While the bank expects another victory over profits, Citi has informed the risks associated with slowing the growth of basic revenues, the Hims GLP-1 strategy, the opposite of the consumer and the broader policy that may pressure the shares despite the positive headlines.
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