Shares of Hims & Hers Health (NYSE: HIMS) extended their momentum Thursday, climbing about 11% in premarket trading after a 14% surge in the prior session.
The rally was fueled by remarks from Health and Human Services Secretary Robert F. Kennedy Jr., who suggested the U.S. government may ease restrictions on certain peptides. Those rules, introduced in 2023 over safety concerns, have constrained access and manufacturing flexibility in the sector.
The shift in tone quickly lifted investor sentiment, with expectations that a more permissive regulatory stance could open new commercial pathways for companies operating in peptide-based treatments.
Regulatory Review Adds to Policy Momentum
Adding to the optimism, the Food and Drug Administration (FDA) has scheduled a summer meeting to review seven peptides. The discussion will focus on whether compounding pharmacies should be allowed to produce these substances at scale.
If approved, such a change could significantly broaden patient access in the U.S. market. However, regulators are still proceeding cautiously, and many peptides remain flagged under current safety frameworks.
Hims & Hers Positioned for Potential Upside
Against this evolving backdrop, Hims & Hers has already taken steps to expand its exposure to the category. Last year, the company acquired a California manufacturing facility to support its move into peptide-based therapies.
Its current offerings include treatments linked to weight management and muscle recovery. While regulatory outcomes remain uncertain, the company’s earlier investments now appear increasingly aligned with potential policy shifts.
BofA Analysts Adjust Outlook but Remain Cautious
Reflecting these developments, BofA Securities revised its outlook on the stock, raising its price target to $25 from $21 while maintaining a “Neutral” rating. As of this writing, Hims & Hers Health (NYSE: HIMS) shares traded at $26.60 and are up roughly 26% over the past week.
Analysts noted that looser restrictions could unlock new revenue streams, including the reallocation of existing GLP-1 capacity to other peptide products, potentially helping offset previously committed costs.
However, BofA emphasized that the situation remains nascent, with no final regulatory decisions in place. Consequently, the update is viewed as a gradual positive rather than an immediate catalyst. Near-term earnings estimates were left unchanged, while the valuation multiple was increased to about 25.5x from 21.5x to reflect longer-term optionality.
Prior Concerns Still Weigh on Outlook
Despite the recent rebound in sentiment, earlier caution has not fully dissipated. Just a week earlier, BofA had reduced its price target to $21 from $23, citing downside risks to future earnings.
At that time, analysts projected 2026 EBITDA could come in roughly 21% below consensus expectations, with GLP-1-related earnings potentially declining by nearly 50% this year.
These pressures are reflected in the stock’s longer-term performance, with shares still down about 56% over the past six months. The company’s market capitalization currently stands at approximately $5.54 billion.
Strategic Shift Brings Both Opportunity and Risk
Meanwhile, Hims & Hers continues to pivot toward branded products to build a more durable long-term business model. This transition could enhance platform strength and improve sustainability over time.
However, the shift also carries near-term trade-offs. Margins may remain under pressure as the company reallocates resources and phases out certain existing investments.
At the same time, analysts see potential upside from international expansion, where economies of scale and cost advantages could support longer-term margin improvement.
