Hinge Health Inc (HNGE) successfully priced its initial public offering (IPO) in May at $32 per share for 13.7 million shares. The company specializes in using software and AI to automate care for musculoskeletal (MSK) conditions, ranging from acute injuries to chronic pain and post-surgical rehabilitation. Following its Wall Street debut, several analysts initiated coverage of the digital-physical therapy startup.
Bank of America Securities analyst Brad Sills rated Hinge Health as a ‘Buy’ with a price forecast of $42, citing its competitive advantages in an $18.5 billion addressable market. Sills noted Hinge Health’s strong customer economics, highlighted by a solid lifetime value (LTV) to customer acquisition cost (CAC) ratio of 4.4x. This indicates that each customer is highly profitable, with potential for expanding margins.
Analyst Coverage and Ratings
KeyBanc Capital Markets analyst Scott Schoenhaus also initiated coverage with an ‘Overweight’ rating and a $45 price forecast. Schoenhaus views Hinge Health as a leader in digital therapy for MSK conditions, a market that remains largely underserved. He sees the company’s tech-enabled platform as highly accessible and user-friendly, with new women’s health offerings acting as a potential catalyst for growth.
Needham analyst Ryan Macdonald initiated coverage with a ‘Buy’ rating and a $47 price forecast. Macdonald believes Hinge Health is well-positioned to disrupt the MSK pain treatment landscape in the U.S., where 40% of Americans experience MSK pain but only 9% use traditional physical therapy services. The company operates in a market worth over $17.5 billion and has potential for further expansion through partnerships with fully insured and Medicare Advantage plans.
William Blair analyst Ryan S. Daniels also initiated coverage with an ‘Outperform’ rating. Daniels praised Hinge Health’s attractive financial model, driven by a recurring subscription-based revenue stream with net-dollar retention levels exceeding 115% and client retention rates of 98%. The analyst noted the company’s industry-leading growth profile and visible revenue model.
Market Performance
At the time of reporting, HNGE stock was trading lower by 0.39% to $36.07 premarket. The coverage initiations reflect analyst confidence in Hinge Health’s growth potential and market position in the digital physical therapy space.
