JPMorgan resumed coverage of Hims & Hers Health. The bank assigned a "Neutral" rating and a $32 price target. JPMorgan had suspended coverage in June. Previously, the bank rated the telehealth company "Overweight."
Hims & Hers faces challenges in its compounded GLP-1 weight-loss drug business. The FDA is increasing scrutiny on this business. Partnerships to sell branded GLP-1 drugs, such as Wegovy and Ozempic, offer a positive offset. JPMorgan seeks better execution on this strategic shift. The bank also requires durable margin expansion. These factors are necessary before JPMorgan becomes more constructive on the stock.