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Truist Securities maintained its buy rating and $48.00 price target on Hinge Health Inc (NYSE:HNGE), currently trading at $38 with a market capitalization of $2.82 billion, following the company’s announcement of HingeSelect, a high-performance provider network for musculoskeletal care. According to InvestingPro data, the company maintains strong financial health with a GOOD overall score, supported by robust gross margins of nearly 80%.
The new offering aims to expand Hinge Health’s ownership of the musculoskeletal care journey for members, with the company planning to leverage software and AI to coordinate and personalize the member experience. HingeSelect is being introduced ahead of the third and fourth quarter selling season, with a limited pilot scheduled for late 2025 and broader implementation expected in 2026. InvestingPro analysis suggests the stock is currently trading at elevated valuation multiples, with several additional insights available to subscribers.
Hinge Health has already secured contracts with 10 large physical therapy and imaging organizations representing more than 1,500 locations, selected based on quality and scale. The company has also signed several early client adopters, though the initiative remains in its early development phase. With a healthy current ratio of 2.31 and strong cash position, the company appears well-positioned to support this expansion.
The company views HingeSelect as a significant opportunity to increase yield, improve return on investment and member outcomes, while adding a high-margin revenue stream to its business. Hinge Health expects the financial impact to materialize in 2027 and beyond, with no material effect anticipated on 2025 or 2026 results.
Truist’s analyst noted after discussions with the company that it was "too early to quantify" the precise financial impact of the new network, which is being announced strategically before the upcoming selling season.
In other recent news, Hinge Health Inc has seen a wave of analyst coverage with positive ratings from multiple firms. Raymond (NSE:RYMD) James initiated coverage with an outperform rating, citing a 33% year-over-year revenue growth and a robust partner network as key factors. The firm expects more than 20% compound annual revenue growth over the next three years. Needham also started coverage with a buy rating, highlighting Hinge Health’s leadership in the virtual musculoskeletal care market and its potential for growth in a $17.5 billion market. Evercore ISI gave an outperform rating, noting the company’s strong business model and projecting gross margins of approximately 80%. William Blair emphasized the transformative nature of Hinge Health’s digital platform and its potential to reshape patient outcomes. Barclays (LON:BARC) initiated coverage with an overweight rating, forecasting 15-20% billings growth and highlighting the company’s competitive advantages, such as its partnerships and advanced technology. These recent developments underscore Hinge Health’s significant market position and growth potential.
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