Hims & Hers Health (HIMS) shares fell for a third consecutive day following a Bank of America Securities warning. Analysts identified significant risks to the company's earnings forecast linked to its oral Wegovy weight-loss subscription.
BofA anticipates high customer churn when the $39 introductory monthly price expires. Subscriptions increase to $149 starting in the second month. Customer growth for the product remained flat month-over-month in June. Rival company Ro is already experiencing a decline in new customers for a similar offering.
The potential loss of subscribers threatens the company's EBITDA targets for the second half of the year. BofA maintained a Neutral rating on the stock. Analysts raised the price target to $37 from $36.