Chip stocks fall with Nvidia after data center rev disappointment
Investing.com - Piper Sandler has reiterated its Overweight rating and $70.00 price target on Hinge Health Inc (NYSE:HNGE), currently trading at $55.89, following a meeting with the company’s Head of Investor Relations at the firm’s headquarters. The stock has shown remarkable momentum, delivering a 53% return over the past six months, according to InvestingPro data.
The research firm highlighted Hinge Health’s "deep and defensible moats" in technology and commercial strategy as key strengths. These include proprietary and patent-protected technology such as TrueMotion, the company’s AI-powered 3D motion tracking technology, and Enso, an FDA-cleared wearable device. The company maintains an impressive 78% gross profit margin, demonstrating strong operational efficiency.
Piper Sandler noted potential conservatism in Hinge Health’s revised CY25 guidance but acknowledged the company faces tougher year-over-year comparisons in the second half of 2025. The firm does not expect the magnitude of the second-quarter 2025 beat to repeat.
The analysts believe first-half 2024 yields, revenues, and billings were suppressed by employer constraints on digital health marketing, with Hinge Health beginning to contract around these constraints in the second half of 2024.
Piper Sandler expects a qualitative selling season update on the third-quarter 2025 call and a fourth-quarter 2025 increase in contracted lives, which will inform trailing 12-month eligible lives and allow evaluation of the CY26 outlook under different yield scenarios. InvestingPro analysis reveals 12 analysts have recently revised their earnings estimates upward, with the company expected to achieve profitability this year. Discover more insights and 9 additional ProTips with an InvestingPro subscription.
In other recent news, Hinge Health has reported its second-quarter earnings, which significantly exceeded market expectations. This strong performance led the company to raise its 2025 revenue and EBIT guidance, with an implied second-half revenue growth exceeding 40%. Following these results, several investment firms have adjusted their outlook on Hinge Health. Piper Sandler increased its price target for the company from $41 to $70, maintaining an Overweight rating. Stifel also raised its target from $55 to $63, upholding a Buy rating. Meanwhile, Citizens JMP adjusted its target from $58 to $65, maintaining a Market Outperform rating. Truist Securities reiterated its Buy rating with a $48 price target after a meeting with company executives, emphasizing the company’s strong momentum. These developments reflect a positive sentiment among analysts towards Hinge Health’s future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.