TD Cowen downgrades telehealth stock amid market concerns

In the United States, telehealth company Hims & Hers Health, Inc. has faced a downgrade in its stock rating issued by TD Cowen. On April 29, 2025, analyst Jonna Kim adjusted the firm’s outlook, moving the rating from 'buy' to 'hold' and revising the price target down from $44 to $30 per share. This new target reflects a modest expected gain of only 5.3% from the stock's closing price the previous day. Concerns were raised regarding the company's performance in light of industry challenges, particularly the recent end of the GLP-1 medication shortage that had previously affected supply and consumer demand for weight loss drugs. Kim further noted that while the first quarter of 2025 may see strong earnings driven by compounded demand, the second half of the year appears more uncertain. Potential factors affecting future revenue include the risk of recession and dwindling consumer interest in Hims & Hers' offerings. The company has indicated it will stop selling compounded versions of Wegovy and Ozempic after May 22, 2025, aligning with FDA guidelines that the shortage has concluded. This shift may lead current GLP-1 users to seek alternatives like Liraglutide, challenging the previously optimistic revenue goals set for 2025. Overall, although the telehealth market remains promising long-term, immediate prospects for Hims & Hers appear limited, prompting this cautious stance from TD Cowen.