Shares of telehealth company Hims & Hers Health Inc. (HIMS) surged as much as 26.35% to an all-time high of $29.68 on Friday, November 11th. The stock closed the trading session at $28.00, capping off a remarkable 213% gain for the year that significantly outperformed the broader market.

The rally was fueled by HIMS' raised full-year revenue forecast and its plans to enter the booming weight loss drug market. Last week, the company increased its 2024 revenue guidance to $1.46-$1.47 billion, up from the previous $1.37-$1.40 billion range. This upward revision came as HIMS announced it will add a generic version of Novo Nordisk's popular diabetes and weight loss medication liraglutide to its platform in 2025.

With soaring demand leading to shortages of brand-name weight loss drugs like Novo's liraglutide and Eli Lilly's blockbuster Mounjaro, HIMS is well-positioned to capitalize on this lucrative market by producing generic alternatives under U.S. regulations. Analysts view the company's entry into the weight loss space as a significant growth opportunity, with TD Cowen raising its HIMS price target to $28 (from $25) on Monday and citing the liraglutide plans as a key driver.