Hinge Health (HNGE) has a "long runway" for growth driven by new products, expanding market opportunities and continued margin improvement, RBC Capital Markets said in a report emailed Thursday, following the company's Movement 2026 conference and investor session in Chicago.
The firm highlighted Hinge Health's decision to raise its Q2 and full-year 2026 guidance, citing strong performance in April and May and management's confidence in the business through the remainder of the year. The company also introduced a "target operating model" that calls for 20% to 25% revenue growth and operating margins above 35%, which the analysts said were "achievable over the medium-term."
Hinge Health could further expand its addressable market through new offerings, including HingeSelect Surgery and its Migraine program. The migraine offering has already been adopted by 300 clients covering more than 3 million "contracted lives" and represents a potential $25 billion annual market opportunity, according to the report.
RBC maintained an outperform rating on Hinge Health and raised the price target to $75 from $65.
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