Shares of Hims & Hers Health (NYSE:HIMS) are under pressure after JPMorgan trimmed its price target on the consumer telehealth name following a messy first quarter. The firm lowered its price target to $33 from $35 while reaffirming an Overweight rating, characterizing results as mixed and updating the 2026 outlook to reflect the strategic shift from compounded to branded GLP-1 medications.
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.
| Ticker | Company | Firm | Action | Old Rating | New Rating | Old Target | New Target |
|---|---|---|---|---|---|---|---|
| HIMS | Hims & Hers Health | JPMorgan | Price target cut | Overweight | Overweight | $35 | $33 |
| HIMS | Hims & Hers Health | Canaccord | Price target raise | Buy | Buy | $30 | $32 |
The Analyst’s Case
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.
Company Snapshot
Hims & Hers operates a subscription telehealth platform spanning weight loss, men’s and women’s dermatology, sexual health, hormone therapies, and diagnostics. 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.
Why the Move Matters Now
The Hims & Hers stock story is no longer a pure GLP-1 trade. Management raised full-year 2026 revenue guidance to $2.8 billion to $3 billion and authorized a $250 million share repurchase, signaling confidence in the platform beyond weight loss.
HIMS stock trades at a P/E ratio of 51x with a 74% TTM gross margin at the trailing level, leaving little room for execution slips. CEO Andrew Dudum asserted that “2026 is a defining year for Hims & Hers”, pointing to international expansion and the pending Eucalyptus deal.
What It Means for Your Portfolio
The split call captures the central tension in Hims & Hers stock: a high-growth telehealth platform navigating a margin-dilutive product transition. Prudent investors weighing the JPMorgan price target cut against Canaccord’s more upbeat take should focus on whether subscriber economics stabilize, given that monthly revenue per subscriber slipped to $80 from $85.
The bull case rests on multi-vertical expansion across men’s health, women’s health, mental health, and diagnostics, plus eventual margin recovery as branded GLP-1 volumes scale. The bear case centers on regulatory risk in telehealth, competitive pressure, and the complexity of the transition itself. Watch for whether Hims & Hers’s Q2 2026 results validate the raised guidance.
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