Bank of America Stays Bearish on Hims & Hers Stock (HIMS) Amid ’Competitive Pressures’ - Here’s Why It Matters

Wall Street's skepticism hits another telehealth player—Bank of America doubles down on its bearish stance against Hims & Hers Health.

The Diagnosis: Competitive Pressures

BofA analysts see mounting threats in the digital health space—new entrants flooding the market, pricing models getting squeezed, and customer acquisition costs soaring. Same old story: traditional finance still doesn't get that tech-driven companies scale differently than brick-and-mortar dinosaurs.

The Prescription: Stay Away

They're maintaining their underperform rating, citing concerns that'll make any growth investor wince. Because nothing says 'forward-thinking analysis' like applying industrial-age valuation models to digital health innovators.

Market Realities Bite

While analysts fret about competition, they're missing the bigger picture—telehealth isn't just healthcare, it's tech infrastructure. But hey, that's Wall Street for you: always fighting the last war while the next revolution happens without them.

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The ruling was welcomed by HIMS investors, as the company faces similar risks regarding its short-lived partnership with Novo Nordisk (NVO).

Here’s Why Bank of America Has a Sell Rating on HIMS Stock

Bank of America highlighted that following the success of Hims & Hers, the number of competitors in the direct-to-consumer (DTC) channel has grown massively. For instance, Remedy Meds was launched in 2024 and is already expecting to generate $450 million of GLP-1 revenue this year.

Given the spike in competition in the sexual health, hair loss, and weight loss DTC market, Lutz sees the possibility of continued consolidation as companies seek economies of scale and broader distribution. Consequently, the 4-star analyst expects near-term competitive pressures to impact the growth and margin of incumbents in the short term, which could be a headwind to HIMS.

Nonetheless, in the intermediate to long term, Lutz believes that HIMS is well-positioned to maintain its leading position, backed by its brand equity and first-mover advantage. The analyst stated that he continues to monitor keyword search trends, broader advertising prices, and the impact on unit economics.

Is HIMS Stock a Good Buy?

Currently, Wall Street is sidelined on Hims & Hers Health stock, with a Hold consensus rating based on two Buys, seven Holds, and two Sell recommendations. The average HIMS stock price target of $47.80 indicates that the stock is fully valued at current levels. Despite the 24% pullback over the past month, HIMS stock is up about 99% year-to-date.