HIMS Stock Slips Despite Early Eucalyptus Buyout Close: Analyst Sees 10% Downside On GLP-1 Profit Risks

• Leerink maintained a 'Market Perform' rating and a $25 price target, implying a 10% downside from current levels.
• The brokerage flagged uncertainty around future profits from branded GLP-1 drugs, including Wegovy sales and Zepbound facilitation.
• Senator Jim Banks reportedly urged the FDA to review Hims' GLP-1 advertising, pricing and subscription practices.

Shares of Hims & Hers Health, Inc. (HIMS) slipped 1% on Tuesday after the telehealth firm completed its buyout of digital health platform Eucalyptus a month ahead of schedule, though Leerink maintained a cautious stance, citing uncertainty around future profits from branded GLP-1 treatments.

HIMS stock snapped five straight sessions of gains on Tuesday, with shares also down 1% overnight. 

Wall Street Watches GLP-1 Risks

Leerink reiterated a 'Market Perform' rating and $25 price target on the stock, implying a 10% downside from current levels. The brokerage said that the earlier-than-expected closing could create upside to revenue guidance since the Eucalyptus deal is not currently reflected in the company's outlook. 

However, the firm said that Hims & Hers' stock performance will likely depend on its U.S. GLP-1 transition, including its ability to convert existing patients in a competitive market. They also highlighted uncertainty around the shift in incremental profits from selling branded GLP-1 drugs such as Novo Nordisk’s Wegovy and facilitating access to Eli Lilly's Zepbound.

Meanwhile, Hims’ weight-loss business is also facing renewed political scrutiny. Senator Jim Banks reportedly urged the FDA to examine advertising, pricing and subscription practices at Hims & Hers and other telehealth providers, raising concerns about the marketing of compounded GLP-1 products, pricing of branded therapies like Zepbound, and whether patients are being steered toward more profitable compounded alternatives. 

Eucalyptus Deal Backs $1.3B EBITDA Goal

The Eucalyptus deal boosts Hims & Hers' position as the “world's largest consumer health platform,” with an expanded presence across the U.S., U.K., Australia, and Canada, alongside growing operations in France, Germany, Ireland, Spain, and Japan. Hims said that the combined platform will bring more data points into its closed-loop ecosystem.

The company said Eucalyptus has served more than 850,000 customers as of May and brings local market expertise, regulatory knowledge, and a track record of launching and scaling digital healthcare services internationally. Hims also said that the acquisition reinforces confidence in its long-term targets of $6.5 billion in revenue and $1.3 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by 2030. The company added that combining Eucalyptus' regional presence with its tech infrastructure and specialty-care offerings will allow it to deliver more personalized care, while maintaining consistent standards across markets.

HIMS’ Push Beyond GLP-1

The acquisition comes as Hims & Hers expands beyond its core prescription business. Last week, the company added iFIT, Ladder, Pvolve, HelloFresh, Factor, MyFitnessPal, Stelo by Dexcom, Flo Health and Natural Cycles to its Hims & Hers Benefits program, bringing the total number of participating brands to 10. The company also integrated Dexcom's Stelo continuous glucose monitor alongside existing partners Prenuvo and Eight Sleep.

The company recently launched generic Semaglutide in Canada through a partnership with Apotex, marking its first international rollout of a generic GLP-1 product. Hims & Hers has also expanded into diagnostics, hormone health, preventive care and AI-powered healthcare tools, including its recently launched Labs AI platform. Investors are additionally watching peptides as a potential future growth driver ahead of upcoming FDA discussions on pharmacy compounding eligibility.

How Do Retail Traders Feel About HIMS?

On Stocktwits, retail sentiment for HIMS was ‘neutral’ amid nearly a 1,700% surge in message volumes over the past month.

One user said, “It's just that the buyers are busy with AI names. Otherwise, this would have been over 40 by now. Patience pays.”

Another user said, “Sometimes the market doesn’t reward execution immediately. Other times, broader sentiment or rotation can drag a stock lower even when fundamentals are strong. It could also be a short-term shakeout before the next leg higher, especially in a stock that’s moving as fast as $HIMS.”

HIMS stock has declined 52% over the past month. 

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