Truist Expects Hims & Hers Health Q2 Earnings to Align with Expectations, Sets Price Target at $48

Hims & Hers Health (HIMS) stock has rebounded 108% YTD despite controversy over unauthorized compounded versions of Novo Nordisk's Wegovy. Truist analyst Jailendra Singh expects Q2 earnings to be mostly in line with expectations but cautions about potential challenges in the second half of the year. Singh maintains a Hold rating and a $48 price target, suggesting ~5% downside from the current trading price.

Hims & Hers Health (HIMS) stock has seen a remarkable 108% year-to-date (YTD) rebound, despite the controversy surrounding the company's unauthorized compounded versions of Novo Nordisk's Wegovy. The stock's resurgence comes after a tumultuous period where Hims & Hers faced allegations of securities fraud and a significant stock decline following the termination of its partnership with Novo Nordisk [1].

The company's stock price fell by more than 34% on June 23, 2025, after Novo Nordisk accused Hims & Hers of deceptive promotion and selling of illegitimate, knockoff versions of Wegovy that put patient safety at risk. The incident highlighted the company's alleged misrepresentation of its partnership with Novo Nordisk and its compliance with FDA regulations [1].

Despite these setbacks, Hims & Hers Health stock has staged a strong comeback, with the YTD performance reflecting investor optimism. This recovery is partly due to the company's expansion plans and its entry into the Canadian market, where it plans to sell a generic version of semaglutide after Novo Nordisk's patent expires [2].

Truist analyst Jailendra Singh expects Hims & Hers Health's Q2 earnings to be mostly in line with expectations but cautions about potential challenges in the second half of the year. Singh maintains a Hold rating and a $48 price target, suggesting a potential ~5% downside from the current trading price [3].

Truist's Q2 earnings report for Truist Financial Corp, which includes BB&T and SunTrust, showed a net income of $1.2 billion and total revenue of $4.99 billion, slightly below estimates. The report also highlighted strong asset quality management and a robust capital position, with a CET1 ratio of 11.0% [3].

In conclusion, while Hims & Hers Health stock has shown resilience and rebounded significantly YTD, investors should remain cautious about potential risks and challenges. The company's entry into the Canadian market and its generic semaglutide offering present opportunities, but the ongoing legal issues and regulatory scrutiny could pose significant hurdles.

References:
[1] https://www.morningstar.com/news/globe-newswire/9496970/hims-securities-news-did-hims-hers-health-inc-nysehims-commit-securities-fraud-contact-bfa-law-by-august-25-class-action-deadline
[2] https://www.nasdaq.com/articles/hims-hers-health-looking-cash-novo-nordisk-blunder
[3] https://www.gurufocus.com/news/2988923/truist-financial-corp-q2-2025-earnings-eps-of-090-misses-estimates-revenue-at-499-billion-below-expectations?r=4bf001661e6fdd88d0cd7a5659ff9748