HIMS Stock Closes Another Day In The Green — But Retail Sees More Upside

• Health and Human Services Secretary Robert F. Kennedy Jr. said in an X post on Wednesday that the FDA will remove 12 peptides from the category of drug substances with significant safety risks.
• Leerink analyst Michael Cherny views Kennedy’s announcement as a "clear positive" for Hims & Hers.
• The lifting of restrictions would help "fill the growth hole" the company is likely to see from the transition to commercial weight loss products, the analyst said.

Shares of Hims & Hers Health (HIMS) closed up12% on Thursday, marking its fourth consecutive day closing in the green, after the U.S. Food and Drug Administration expressed willingness to consider whether compounding pharmacies can manufacture certain peptides.

Health and Human Services Secretary Robert F. Kennedy Jr. said in an X post on Wednesday that the FDA will remove 12 peptides from the category of drug substances with significant safety risks. The previous categorization prohibited compounding pharmacies from making versions of it.

At two meetings starting in July, independent experts at the Pharmacy Compounding Advisory Committee will rigorously evaluate each substance on its scientific merits using full clinical, pharmacological, and safety evidence, the Health Secretary said, stoking investor optimism for HIMS being able to sell peptides.

How Did Retail Traders React?

On Stocktwits, retail sentiment around HIMS stock jumped from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours, while message volume increased from ‘low’ to ‘extremely high’ levels. Retail chatter jumped 628% over the past day, according to platform data.

A Stocktwits user said that a possible pivot to peptides will have the biggest driver of revenue growth for Hims.

Another user said that the stock continues to be undervalued.

A third user said that the stars are aligned for HIMS stock with Trump not wanting to get “in the way of healthcare” and a recent agreement with Novo Nordisk to sell branded GLP-1 therapies instead of compounded treatments.  

Wall Street Weighs In

Leerink analyst Michael Cherny views Kennedy’s announcement as a "clear positive" for Hims & Hers. The lifting of restrictions would help "fill the growth hole" the company is likely to see from the transition to commercial weight loss products, the analyst told investors in a research note. Leerink believes a positive recommendation from the advisory committee would allow Hims & Hers to leverage its existing peptide facility.

"This would not immediately translate into revenue but would seemingly be a growth avenue that HIMS would push hard on," the firm writes. Leerink has a ‘Market Perform’ rating on Hims & Hers.

Bank of America Securities also lifted its price target on Hims to $25 from $21, while maintaining a ‘Neutral’ rating, earlier in the day.

Hims Eyes Peptides

Hims has previously expressed interest in expanding its peptide offerings. In February, the company said that it plans to work on research and development for “future categories like peptides.”

“Our medical team believes certain peptide therapies hold meaningful potential in helping Americans live healthier lives, and we are actively exploring how to expand access in a way that will be aligned with FDA guidance and reflects our commitment to consumer safety, transparency, and clinical excellence,” Hims Chief Medical Office Pat Carroll said on Wednesday.

HIMS stock has gained 1% over the past 12 months despite diving nearly 54% over the past six months. 

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