BofA Securities lowered the price target for Hims & Hers Health to $25 from $28. The bank expressed concerns regarding the company's ability to meet its 2026 revenue guidance.
Meeting these forecasts requires a substantial increase in weight-loss drug subscribers during the second half of the year. Current guidance fails to account for potential pricing pressure.
BofA estimates the company must add approximately 225,000 new oral Wegovy subscribers every quarter through year-end. This growth requires capturing 45% of the total U.S. cash-pay market for the drug. Analysts expect significant patient churn from older compounded medications to further challenge these goals.