Citi downgraded Hims & Hers to Sell from Neutral with a price target of $25, up from $24. The firm thinks the market is overvaluing the company’s GLP-1 revenue stream. With Tirzepatide now officially the FDA’s shortage list, it is more likely than not that Semaglutide is removed in the next 12 months, the analyst tells investors in a research note. Citi says that if this were to happen, Hims & Hers’ weight loss market would be “significantly constrained” as it would only be able to compound GLP-1s by changing the formulation for the specific clinical benefit of an individual. As such, the firm’s GLP-1 revenue estimate falls from $400M in fiscal 2025 to $135M. Additionally, the space has become more competitive from the likes of large pharma, contends Citi.
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