Hims & Hers stock rises after Canaccord raises target

Hims & Hers shares climbed 9% on Wednesday after Canaccord Genuity raised its price target to $40 from $32 and maintained a Buy rating. The upgrade came ahead of a U.S. Food and Drug Administration advisory committee meeting on peptide therapies scheduled for July 23-24.

Canaccord analyst Maria Ripps pointed to improving sales trends, momentum in the company’s weight-loss business and growing investor interest in its peptide plans. The firm noted that Hims & Hers finished the second quarter with the stock up roughly 67%. Canaccord’s analysis cited credit card spending data showing adjusted year-over-year sales growth accelerating from the mid-to-high single digits in April to the high teens by June.

The firm highlighted commercial developments including Hims becoming a major telehealth partner for weight-loss drugs from a leading manufacturer, the launch of a generic form of semaglutide in Canada in late May, and the closing of the Eucalyptus acquisition in early June. Financials cited by Canaccord showed $2.37 billion in revenue over the last 12 months, 33% revenue growth and a 73% gross profit margin.

The FDA advisory committee will review seven peptides: BPC-157, Emideltide, Epitalon, KPV, MOTS-c, Semax and TB-500. FDA staff recommended against allowing compounding pharmacies to manufacture these peptides, saying the available evidence supporting their use is limited and that safety concerns remain unresolved.

FDA staff referenced adverse-event data and potential risks such as immune responses that could not be ruled out. A former advisory committee member, Dr. Anita Gupta, has noted prior reviews flagged risks of immunogenicity and product quality problems in some peptide products, including heavy metals, microbial contamination and mislabeling.

Hims & Hers acquired a California peptide manufacturing facility earlier this year to bolster domestic supply capacity and support potential work in preventive health, metabolic optimization, cognitive performance and recovery science. Canaccord said improving sentiment around the company’s peptide strategy has become a positive factor for investors.

Needham analyst Ryan MacDonald described the FDA staff recommendation as unexpected but not final. He told investors on social media that the advisory committee must review the scientific evidence and stakeholder input before making a recommendation, and that FDA leadership and the Department of Health and Human Services will influence the final outcome. Health Secretary Robert F. Kennedy Jr. has publicly expressed support for loosening peptide regulation. Analysts have said the peptide market could become a multibillion-dollar opportunity for companies able to manufacture and distribute these therapies if regulatory conditions change.