Wall Street Cautious on Hims & Hers Prospects Amid Peptides Launch

Hims & Hers Health (HIMS), the prominent health and wellness platform, is gearing up to introduce legally available peptide treatments to its offerings by the end of the year. However, Wall Street analysts and investors are maintaining a cautious stance, suggesting that this new venture is unlikely to significantly boost the company's revenue growth in 2026. The company is actively seeking new avenues for expansion following its strategic pivot in GLP-1 medications.

This development follows a July vote by a U.S. Food and Drug Administration (FDA) advisory committee, which recommended adding certain peptides, including BPC-157 and KPV, to the list of bulk drug substances eligible for compounding by pharmacies. While this decision is perceived as a positive step for Hims & Hers' reclassification thesis, the rejection of emideltide, a commercially anticipated peptide, has raised questions about the regulatory pathway for the company's broader peptide strategy. Analysts estimate the peptide market to be between $2.2 billion and $3.3 billion, but they suggest that Hims & Hers might not see meaningful revenue contributions from this segment until after 2028.

The market remains conservative regarding the timing of returns from peptides. Concerns exist that peptides may scale more slowly compared to the rapid adoption seen with GLP-1 weight-loss drugs. Hims & Hers stock experienced a 14% single-day drop in July following the rejection of emideltide, highlighting investors' sensitivity to regulatory hurdles and the short-term impact of new product launches. The company's first-quarter 2026 revenue saw a modest 4% year-over-year increase to $608 million, primarily due to its strategic shift from compounded GLP-1 products to FDA-approved alternatives.

The peptide launch is part of Hims & Hers' broader strategic evolution. The company has recently shifted away from compounded GLP-1 products, instead partnering with major pharmaceutical companies like Novo Nordisk and Eli Lilly to offer FDA-approved GLP-1 medications such as Wegovy, Ozempic, Zepbound, and Foundayo on its platform. While this strategic pivot has caused short-term financial fluctuations, it holds long-term growth potential. Additionally, the company is currently facing a lawsuit from the U.S. Federal Trade Commission (FTC) concerning alleged deceptive privacy practices and subscription cancellation issues.

Analysts generally hold a “Moderate Buy” or “Hold” consensus rating for Hims & Hers stock, with significant variations in price targets. This divergence reflects differing opinions on the company's growth trajectory in both the peptide and weight-loss sectors. While near-term regulatory uncertainties and market entry challenges are anticipated, peptides are expected to contribute meaningfully to the company's revenue in the long run, likely materializing post-2028.