"JPMorgan's price target cut reflects near-term caution around the GLP-1 pivot, with Hims & Hers retooling its U.S. weight loss offering away from compounded versions toward branded alternatives as branded supply has stabilized and compounded products have come off the FDA shortage list. Compounded GLP-1s carried higher margins, and the handoff is creating reporting noise."
"Canaccord viewed the same quarter more constructively. The firm attributed softness to a tough year-over-year comparison driven by record weight loss net adds in the prior period, plus shorter shipping cadences tied to the branded GLP-1 pivot."
"The company reported Q1 2026 revenue of $608.1 million, up 4% year over year, missing consensus, with EPS of -$0.40 against a $0.03 estimate. Hims & Hers's margins compressed sharply. GAAP gross margin slipped to 65% from 73%, and adjusted EBITDA fell to $44.28 million from $91.06 million. International revenue, however, surged 969% year over year to $78.19 million."
"The action highlights a divided Wall Street view. On the same day, Canaccord raised its target to $32 from $30 and kept a Buy rating, framing the quarter as a transition speed bump rather than a thesis break. HIMS stock traded at $25.31 on Tuesday."
Hims & Hers Health shares fell after JPMorgan reduced its price target while keeping an Overweight rating, citing mixed results and a strategic pivot from compounded to branded GLP-1 medications. Canaccord raised its target and maintained a Buy rating, viewing the quarter as a transition period affected by difficult year-over-year comparisons and shorter shipping cycles tied to the pivot. The company reported Q1 2026 revenue of $608.1 million, up 4% year over year but below consensus, with EPS of -$0.40 versus a $0.03 estimate. GAAP gross margin declined to 65% from 73%, and adjusted EBITDA fell to $44.28 million from $91.06 million. International revenue rose sharply to $78.19 million, and full-year 2026 revenue guidance increased to $2.8 billion.
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