Analyst Bradley Sills of Bank of America Securities reiterated a Buy rating on Hinge Health, Inc. Class A, boosting the price target to $64.00.
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Bradley Sills has given his Buy rating due to a combination of factors that highlight Hinge Health’s strong performance and growth potential. The company reported a remarkable 55% year-over-year revenue growth in the second quarter, significantly surpassing the consensus estimate of 39%. This growth was driven by robust demand across employer and health plan channels, as well as early success in new markets like Medicare Advantage.
Additionally, Hinge Health demonstrated significant margin improvements, with gross margins expanding to 82.9% and operating margins improving to 18.8% from a negative margin the previous year. These improvements are attributed to efficiencies in hardware and infrastructure costs, as well as the company’s effective use of AI tools to enhance operational efficiency. The company’s leadership in the digital therapy market, with a large addressable market of $18.5 billion, and its ability to scale effectively, further support the Buy rating. Consequently, Sills has raised the price objective to $64, reflecting the company’s accelerating momentum and potential for future growth.
In another report released today, Canaccord Genuity also maintained a Buy rating on the stock with a $61.00 price target.