U.S. stocks edge higher; solid earnings season continues
Evercore ISI initiated coverage on Hinge Health Inc (NYSE:HNGE) with an outperform rating and a $50.00 price target on Monday. The stock, currently trading at $34.85, has seen an 8.29% decline over the past week, according to InvestingPro data.
The virtual physical therapy provider offers treatment for musculoskeletal (MSK) conditions through employers and health plans at no cost to patients. Evercore noted that while 40% of people have MSK problems, only 9% seek in-person help annually through their employers and health plans.
Hinge Health has built a customer base of more than 585,000 members with approximately 18 million eligible lives, positioning the company for continued annual growth of about 20% by attracting new customers and increasing penetration within existing ones, according to Evercore.
The firm highlighted Hinge Health’s business model, which generates revenue through either an annual subscription or utilization-based approach at approximately $900 per year. This model has proven attractive to employers and health plans by driving "hard dollar cost savings," Evercore stated.
Evercore projects the company will maintain gross margins of approximately 80%, providing a foundation to scale operating expenses and reach long-term EBITDA margin targets exceeding 25%, up from about 7% in 2025. The firm described the current valuation of approximately 5 times 2026 revenue as "compelling."
In other recent news, Hinge Health has been the focus of several analyst firms initiating coverage with positive ratings. William Blair started coverage with an outperform rating, emphasizing the company’s innovative digital physical therapy platform as a transformative tool in musculoskeletal care. Barclays (LON:BARC) followed suit with an overweight rating and a $43 price target, highlighting the significant market potential and Hinge Health’s competitive advantages, such as its advanced 3D pose estimation technology. Truist Securities also initiated coverage with a buy rating and a $48 price target, citing the company’s leadership position and robust partner network in the digital musculoskeletal care market.
Additionally, Piper Sandler gave Hinge Health an overweight rating with a $41 price target, praising the company’s AI-powered care solutions and sustainable pricing model. Morgan Stanley (NYSE:MS) joined the group with an overweight rating and a $46 price target, recognizing Hinge Health as a leader in the virtual physical therapy space and noting its strong growth trajectory and strategic partnerships. These recent developments underscore the company’s favorable outlook and potential for continued growth in the digital healthcare sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.