BofA downgraded Hims & Hers (HIMS) to Underperform from Buy with a price target of $18, down from $32. Amazon (AMZN) launched a cash-pay telehealth service and treatment offering that could compete directly with Hims & Hers, the analyst tells investors in a research note. The firm says Amazon is offering Prime Members access to low-price care across 30-plus conditions, including men’s hair loss, eyelash growth, anti-aging, erectile dysfunction and motion sickness. BofA notes Hims & Hers generates 80%-plus gross margins from its core hair loss and erectile dysfunction markets. The firm now has less confidence in the company’s margin and growth trajectory due the pending Amazon competition. Hims & Hers is down 20%, or $5.63, in midday trading.
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