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Investing.com - Stifel raised its price target on Hinge Health Inc (NYSE:HNGE) to $63.00 from $55.00 on Wednesday, while maintaining a Buy rating following the company’s second-quarter performance that significantly exceeded consensus expectations. The digital healthcare company, currently trading at $48.22 with a market capitalization of $3.76 billion, has shown remarkable momentum with a 28.38% return over the past six months.
The digital healthcare company reported second-quarter results that materially outperformed market expectations, prompting management to raise its 2025 revenue and EBIT guidance substantially above previous estimates, with implied second-half revenue growth exceeding 40%. The company maintains impressive fundamentals, with InvestingPro data showing a robust gross profit margin of 79.46% and an overall financial health score of "GREAT."
Stifel attributed the strong performance to higher eligible populations within new customer additions and improved yields resulting from better targeted marketing efforts, noting that while second-half operating income guidance increased significantly, it assumes approximately 13.5% EBIT margins versus 15.6% in the first half.
The investment firm raised its 2025 revenue growth estimate from 35% to 42% and increased its EBIT margin forecast from 7.4% to 15%, reflecting higher unit growth while maintaining its 2026 revenue growth projection at approximately 20% with an increased EBIT margin assumption from 10.5% to 17%.
Stifel’s new $63 price target represents 28 times the company’s estimated 2027 EBITDA, with analysts noting positive qualitative commentary heading into the seasonally important selling period, including strong pipeline and conversion rates. InvestingPro analysis indicates the stock is trading above its Fair Value, with 8 additional exclusive tips available to subscribers, including detailed insights on valuation multiples and growth prospects.
In other recent news, Hinge Health reported revenue of $139.1 million in its first quarter as a public company, surpassing consensus estimates of $125.4 million and marking a 55% year-over-year growth. Following this strong earnings report, Citizens JMP raised its price target for Hinge Health to $65 from $58 while maintaining a Market Outperform rating. Raymond (NSE:RYMD) James also initiated coverage on Hinge Health with an outperform rating and set a price target of $45, highlighting the company’s durable growth profile and expectations of over 20% annual revenue growth. Truist Securities reiterated its buy rating and $48 price target after a dinner meeting with company executives and in light of Hinge Health’s recent launch of HingeSelect, a high-performance provider network for musculoskeletal care. The new offering aims to enhance the member experience through software and AI, with broader implementation anticipated in 2026. Additionally, Citizens JMP had previously initiated coverage on Hinge Health with a Market Outperform rating and a price target of $58, following the company’s initial public offering. These developments reflect continued confidence from multiple analyst firms in Hinge Health’s growth trajectory and market position.
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