Baird initiates coverage on Hinge Health stock with Neutral rating

Investing.com - Baird initiated coverage on Hinge Health Inc (NYSE:HNGE) with a Neutral rating and a price target of $56.00 on Friday. The digital healthcare company, currently valued at $4.5 billion, has shown strong momentum with a 49% price return over the past six months.

The research firm acknowledged Hinge Health’s compelling product offering that addresses a critical need among payers in reducing musculoskeletal-related costs.

Baird highlighted several positive aspects of the company, including "the attractive market opportunity, robust growth rate, and runway for profitability."

Despite these strengths, the firm expressed caution regarding two key concerns: potential macroeconomic factors weighing on end-market demand and intense industry competition.

Baird noted that these concerns, combined with "already robust investor expectations at this stage," led to its cautious stance on the digital healthcare company.

In other recent news, Hinge Health has seen a series of positive developments following its second-quarter earnings report. The company reported revenue of $139.1 million, surpassing consensus estimates of $125.4 million and marking a 55% year-over-year growth. This strong performance prompted Hinge Health to raise its 2025 revenue and EBIT guidance, with expectations for second-half revenue growth exceeding 40%. Piper Sandler responded to these results by raising its price target for Hinge Health to $70, maintaining an Overweight rating due to the company’s robust technology and commercial strategies. Stifel also increased its price target to $63, citing the company’s significant outperformance relative to market expectations. Additionally, Citizens JMP raised its price target to $65 and maintained a Market Outperform rating, reflecting confidence in Hinge Health’s growth trajectory. These developments follow Citizens JMP’s initiation of coverage with a Market Outperform rating and a price target of $58 after the company’s IPO. These updates highlight the positive sentiment among analysts regarding Hinge Health’s future prospects.

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