Hims & Hers Health (HIMS) shares are up 20% this morning after announcing a new partnership with Novo Nordisk (NVO).
Novo Nordisk expects that teaming up with HIMS will help further expand access to its weight-loss treatment, Wegovy, which it confirmed is no longer facing supply shortages in the U.S.
Despite a sharp increase this morning, Hims & Hers stock is down nearly 50% versus its year-to-date high in February.
Why Is Hims & Hers Stock Rallying on Tuesday?
Hims & Hers shares are gaining because the Novo Nordisk partnership strengthens its exposure to the fast-growing global market for weight-loss treatments.
In its latest reported quarter, the European giant more than doubled its revenue from Wegovy to 19.87 billion Danish kroner. In fact, analysts now expect GLP-1s to emerge as one of the highest-grossing drug classes in 2025.
So, continued strong demand for Wegovy could deliver a significant boost to HIMS’ top line. The telehealth firm is offering the weight-loss drug as a subscription, starting at $599, which could meaningfully drive recurring revenue moving forward.
All in all, teaming up with Novo Nordisk strengthens Hims & Hers’ position against rivals in the telehealth market.
Is There Any Further Upside Left in HIMS Shares?
In total, Hims & Hers stock has already gained more than 30% in recent sessions. Still, analysts at Truist Securities expect significant further upside in the San Franciso-headquartered telehealth firm.
The investment firm sees HIMS’ expansion into the anti-obesity market as a meaningful positive as it may serve as a marketing tool that will help attract new users to the company’s online platform as well.
Truist currently rates Hims & Hers shares at “Hold” only, but its $39 price target indicates potential upside of about 15% from current levels.
Wall Street Remains Largely Bullish on Hims & Hers
Other Wall Street analysts are positive on Hims & Hers stock for 2025 as well.
The consensus rating on the NYSE-listed firm currently sits at “Moderate Buy” with the mean target of about $42 suggesting potential upside of about 24% from here.
