Key Takeaways
- Truist Securities increased HIMS price target from $27 to $32 while keeping a Hold rating
- The firm’s updated 2026 U.S. GLP-1 revenue projection stands at $1.2 billion, up from $802 million in 2025
- Revenue from compounded GLP-1 drugs ($625M) is projected to exceed branded prescription sales ($578M) in 2026
- Shares of HIMS finished Tuesday’s session at $31.75, gaining 2%, with a weekly advance of 13.5%
- The analyst anticipates EBITDA margin expansion in the latter half of 2026 for both compounded and branded GLP-1 products
Shares of Hims & Hers Health (HIMS) advanced 2% to close at $31.75 on Tuesday after Truist Securities published revised financial projections for the telehealth platform, incorporating insights from proprietary credit card transaction data and second-quarter 2026 earnings reports.
Hims & Hers Health, Inc., HIMS
Jailendra Singh, analyst at Truist, maintained his Hold rating on HIMS shares while boosting the price objective from $27 to $32.
The investment firm’s updated forecast calls for U.S. GLP-1 medication revenue of $1.2 billion in 2026, representing an increase from the previous $1.14 billion projection and significantly above the $802 million recorded in 2025.
According to Truist’s analysis, weight-loss pharmaceuticals are projected to account for approximately 40% of the company’s total annual revenue in the current year. The firm’s full-year revenue forecast of $3.159 billion falls within the lower end of management’s guidance band of $3.1 billion to $3.3 billion.
Representing a notable adjustment from prior assumptions, Truist now anticipates that compounded GLP-1 product sales will take the leading position. The firm projects $625 million in compounded drug revenue, marginally outpacing the $578 million expected from branded prescription sales.
This represents a reversal from Truist’s previous forecast, which had anticipated branded prescriptions would generate higher revenue.
Singh attributes the model revision to two primary factors. First, customer retention rates within the compounded medication business exceeded initial expectations. Second, the pace of new member acquisition for branded products has decelerated.
“Any incremental improvement in retention should be beneficial to HIMS overall revenue and profitability,” Singh wrote.
Profitability Trajectory
Truist forecasts margin enhancement during the second half of 2026. The firm projects adjusted EBITDA margins on compounded prescriptions will reach 18.5%, representing an expansion from the 15.5% recorded in Q2. For branded medications, margins are expected to climb to 16.5%, a substantial improvement from the 5% margin achieved in Q2.
Breaking down branded revenue composition, Truist estimates that 55%—approximately $320 million—represents the direct cost of medication, while the remaining 45% derives from recurring customer membership subscriptions.
The company delivered Q2 revenue of $753 million, marking a 40% year-over-year increase that surpassed analyst consensus. However, the company recorded a loss of $0.37 per share, wider than market expectations.
On the Q2 earnings conference call, CFO Yemi Okupe highlighted the company’s March launch of expanded branded weight-loss product offerings as a “key driver” behind second-quarter momentum.
Wall Street Sentiment
Analyst opinions on HIMS remain divided. Needham elevated its price target to $42, pointing to robust Q2 performance and a strategic collaboration with Novo Nordisk. Canaccord Genuity maintained its Buy recommendation with a $40 price objective. Meanwhile, Barclays reduced its target from $39 to $35, expressing concerns about margin compression.
The company has demonstrated 28% revenue expansion alongside a 69.5% gross profit margin, with Wall Street broadly anticipating the company will achieve profitability during the current year.
HIMS shares have climbed 13.5% over the trailing week. Truist’s proprietary card transaction data indicates that retention rates among current branded medication subscribers continue to hold firm.
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