Raymond James initiates Hinge Health stock rating at outperform

Raymond (NSE:RYMD) James initiated coverage on Hinge Health Inc (NYSE:HNGE) Monday with an outperform rating and a price target of $45.00. The stock, currently trading near its 52-week low of $33.42, has experienced an 8.29% decline over the past week. According to InvestingPro data, analyst price targets range from $45 to $48.

The research firm cited Hinge Health’s "durable growth profile" with expectations of more than 20% compound annual revenue growth over the next three years in what it described as a "large, macro-resilient market."

Raymond James highlighted the company’s position as a leader in digital physical therapy and noted the strength of its partner network as factors supporting "ample room for sustained double-digit growth."

The firm pointed to Hinge Health’s current performance metrics, including 33% year-over-year revenue growth and 42% calculated billings growth in 2024, as evidence of the company’s momentum.

Raymond James stated that the current valuation of approximately five times estimated 2026 sales does not "appropriately value the company’s growth prospects," noting potential upside drivers including higher member yield and minimal contribution from new markets in current projections.

In other recent news, Hinge Health has received several analyst ratings that highlight its position in the digital musculoskeletal care market. Needham initiated coverage with a buy rating, emphasizing Hinge Health’s leadership in virtual musculoskeletal care and noting its potential for substantial growth within a $17.5 billion market. Evercore ISI also rated the company as outperform, projecting continued annual growth of about 20% and highlighting its attractive revenue model for employers and health plans. William Blair provided an outperform rating, describing Hinge Health’s platform as transformative and emphasizing its patient engagement and convenience. Barclays (LON:BARC) initiated coverage with an overweight rating, projecting 20% revenue growth over the next three years and noting its competitive advantages and advanced technology. Truist Securities rated the company as a buy, citing its structural advantages and the potential for long-term value creation. These recent developments reflect a strong consensus among analysts about Hinge Health’s promising growth outlook and competitive positioning.

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