Barclays initiates Hinge Health stock with overweight rating on MSK market

Published 16/06/2025, 10:16
Barclays initiates Hinge Health stock with overweight rating on MSK market

Barclays (LON:BARC) initiated coverage of Hinge Health Inc (NYSE:HNGE) with an overweight rating and a $43 price target on Monday. The stock, currently trading at $34.85, has experienced an 8.29% decline over the past week, according to InvestingPro data.

The digital musculoskeletal (MSK) healthcare company addresses a significant market need, with Barclays noting that MSK issues affect approximately 40% of U.S. adults, yet only 9% seek physical therapy due to high costs and time commitments. Hinge Health’s app-based approach aims to overcome these barriers while improving patient outcomes. The company maintains strong financial health with a robust 79.46% gross profit margin and holds more cash than debt on its balance sheet.

Barclays estimates the digital MSK market represents an $18 billion opportunity across self-insured, fully-insured, and Medicare Advantage programs. The firm highlighted Hinge Health’s competitive advantages, including partnerships with major health plans and pharmacy benefit managers, plus its advanced 3D pose estimation technology called TrueMotion. InvestingPro analysis reveals 8 additional key insights about Hinge Health’s market position and financial strength.

The research firm expects Hinge Health to deliver 15-20% billings growth, translating to approximately 20% revenue growth over the next three years. This growth projection is based on existing client enrollment data and the company’s new client pipeline.

Barclays also pointed to Hinge Health’s improving profitability outlook, noting that EBIT margins are "poised to expand from breakeven today" as the company scales its digital MSK platform.

In other recent news, Hinge Health Inc has attracted attention from several major investment firms with newly initiated coverage. Truist Securities started coverage with a buy rating and a $48.00 price target, emphasizing the company’s leadership in the digital musculoskeletal care market and its strong economic advantages. Piper Sandler also initiated coverage with an overweight rating and a $41.00 price target, citing the company’s proprietary technology and potential for sustained revenue growth. Morgan Stanley (NYSE:MS) joined in with an overweight rating and a $46.00 price target, highlighting Hinge Health’s strong return on investment and strategic partnerships. RBC Capital Markets gave the company an outperform rating and a $45.00 price target, focusing on its market penetration and margin expansion potential. KeyBanc Capital Markets also provided an overweight rating with a $45.00 price target, noting the company’s leadership in digital therapy for musculoskeletal conditions and potential for margin expansion. These developments underscore Hinge Health’s strong position and growth prospects in the digital healthcare sector.

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