Hims & Hers Health Inc. (HIMS) experienced a significant intraday surge of 6.22% on Friday, as the stock opened sharply higher.

The rally was primarily driven by J.P. Morgan initiating coverage on the telehealth company with an "overweight" rating and a $35 price target. Analysts highlighted the potential for the Novo partnership to remove legal overhang and position the firm as a comprehensive platform. They also noted the company's weight loss specialty could grow further this year, supported by a more stable GLP-1 business, potential peptide legalization, and expected revenue reacceleration in the second half.

Adding to the positive sentiment, the company's platform has fully launched multiple FDA-certified GLP-1 drugs, including Eli Lilly's Zepbound. Furthermore, a potential regulatory shift by the U.S. FDA to relax restrictions on peptide injectable drugs could open new revenue streams for the digital health platform, which boasts over 2.5 million subscribers.