BofA cuts PT on Hims & Hers, cites near-term pressure from branded GLP-1 shift

Brokerage BofA Global Research cuts PT on telehealth provider Hims & Hers Health HIMS.N to $21 from $23

New PT represents 7.7% upside to stock's last close

BofA says co's shift to branded GLP-1 drugs and bigger international revenue mix should pressure near-term margins but could support more durable business over time

Notes its 2026 EBITDA forecast is about 20% below Wall Street consensus and estimated GLP-1 EBITDA contribution could fall about 50% year over year

Estimates HIMS can convert 40% to 50% of existing GLP-1 subscribers to branded products, while 5% to 10% remain on compounded treatments

Shift will result in roughly $60 million to $90 million in quarterly GLP-1 revenue, plus 5,000 to 10,000 new branded subscribers per quarter - BofA

BofA says HIMS aims to grow international business to more than $1 billion over three years, with Eucalyptus expected to be the biggest contributor after deal closing in mid-2026

HIMS stock is down 50.5% YTD