Hims & Hers Stock Defies Expectations Amid Novo Nordisk Snub

Hims & Hers US4330001060

In a move that caught market observers off guard, shares of Hims & Hers Health posted their strongest trading session in a month on Monday. This surge occurred despite fresh news that seemingly represented a significant competitive setback for the telehealth company.

The catalyst for the session was an announcement from Danish pharmaceutical giant Novo Nordisk. The company revealed it is significantly expanding the distribution of its weight-loss pill, Wegovy, across the United States. While major retail partners like CVS Health and Costco were named in the rollout, Hims & Hers was conspicuously absent from the partner list once again.

Analysts from Citi interpret this continued exclusion as confirmation of ongoing strategic disagreements between Novo Nordisk and Hims & Hers. The point of contention is believed to be Hims & Hers' practice of using compounded versions of weight-loss medications. Citi strategists issued a clear warning: the wider availability of the branded original drug could place substantial pressure on Hims & Hers' crucial GLP-1-based business segment by 2026.

Contrary to what this negative development might suggest, the market reaction was decisively positive. The equity advanced by 3.89 percent to close at $34.94. Some analysts view this as a technical rebound following a weak finish to 2025, which had significantly depressed the company's market valuation. The price action suggests investors are currently willing to look past near-term risks and are seizing on the lower share price as a potential entry point.

Divergent Views from Wall Street

Expert opinion on the stock's trajectory is currently polarized. Citi maintains its sell rating with a price target of $30, underscoring the competitive threats. In contrast, analysts at Barclays strike a more optimistic tone. They point to what they see as more realistic market expectations now priced into the stock and highlight the company's new growth initiatives.

A central part of the Hims & Hers strategy is to reduce its reliance on the crowded U.S. weight-loss market. Recent steps to achieve this include the expansion of its weight management program into the United Kingdom and the acquisition of the Canadian platform Livewell. These moves are designed to open new revenue streams as competition from large pharmaceutical firms intensifies on its home turf.

Valuation and Forthcoming Challenges

Despite Monday's rally, the fundamental picture remains challenging. The stock trades at a price-to-earnings multiple exceeding 60, an ambitious valuation that leaves little room for operational missteps. This is particularly true after the company's third-quarter earnings fell short of analyst expectations. Even with the recent gain, the share price remains approximately 47 percent below its 52-week high.

All eyes are now on the quarterly results scheduled for late February 2026. Management will be under pressure to present a coherent strategy for navigating the increasingly competitive landscape and to provide concrete data demonstrating the early success of its international expansion efforts.