Hims & Hers Health (HIMS) shares are extending gains on April 16 after HHS Secretary Robert F. Kennedy Jr. said the Food and Drug Administration (FDA) is considering removing restrictions on more than half a dozen peptides.
Following this surge, HIMS is trading a little under its 100-day moving average (MA), with a clear break above $27 expected to accelerate bullish momentum in the near term.
At the time of writing, Hims & Hers stock is down nearly 25% versus its year-to-date high.
Significance of RFK Jr.’s Remarks for HIMS Shares
HIMS' stock price rally on Thursday stems from RFK Jr.’s aggressive push to move peptides out of the gray market and into regulated channels.
By convening an advisory committee to evaluate adding these compounds to the 503A Bulks List, the FDA is essentially opening a multi-billion-dollar door for compounding pharmacies.
This would unlock meaningful upside for Hims & Hers, given it has recently acquired a California-based peptide manufacturing facility. Plus, the telehealth firm already has the national distribution network to capitalize on legalized access.
All in all, if the FDA does indeed remove restrictions from some peptides after its July meeting, it will significantly diversify the company’s revenue beyond its current GLP-1 weight-loss offerings.
Why Hims & Hers Stock Remains Unattractive in 2026
Despite the aforementioned political tailwind, disciplined investors are recommended to keep on the sidelines partly because the FDA’s initial step won’t impact earnings until 2027, according to BofA analysts.
Moreover, Hims & Hers shares are currently trading at a forward price-to-earnings (P/E) multiple of about 35x, which appears rather stretched given that the company’s net income actually declined by nearly 21% in its latest reported quarter.
With insiders aggressively unloading stock in recent months and intensifying competition from Amazon (AMZN) Pharmacy’s same-day delivery of branded GLP-1s, HIMS faces significant headwinds in 2026.
And it’s not like the telehealth company pays a healthy dividend to offset some of these risks either.
Wall Street Recommends Caution on Hims & Hers Health
What’s also worth mentioning is that Wall Street firms also recommend caution in playing HIMS shares at current levels.
The consensus rating on Hims & Hers Health sits at a “Hold," with the mean price target of $25.46 signaling potential downside of about 5% from here.
