BofA Securities reiterated its Underperform rating on Hims & Hers Health (NYSE:HIMS), keeping its price target steady at $22, citing signs of decelerating momentum in the company’s core business. The company’s shares are currently down more than 10% intra-day.

Although online revenue in Q1 appears poised to beat consensus estimates—with projections ranging between $567 million and $601 million versus the $528.4 million expected—March data showed a notable slowdown. Year-over-year sales growth dropped by 45 percentage points to 78%, ending a five-month streak of acceleration.

One area of concern is the average transaction value, which fell month-over-month for the first time since September. BofA also noted a decline in GLP-1 sales in March, possibly due to reduced advertising or a transition to alternative weight loss treatments like personalized liraglutide or oral medications.

The firm now estimates GLP-1s accounted for around 38–40% of Q1 sales, suggesting core growth stands closer to 35% year-over-year—better than earlier estimates, but still a drop from the 39% seen in Q4.

With the company’s 2025 guidance assuming a reacceleration in core growth, BofA questions the achievability of its $725 million weight loss target, especially if semaglutide contributions taper off after Q2. Minor adjustments were made to the firm’s forecasts, but the overall cautious view remains unchanged.