Needham has begun coverage of Hinge Health (HNGE, Financial) with a Buy rating and has set a price target of $47. The company is recognized as a leader in the virtual musculoskeletal (MSK) industry, leveraging both cutting-edge technology and effective contracts to gain an advantage. This strategic position is expected to not only capture market share from other digital competitors but also from traditional in-person physical therapy services over time.
The MSK sector in the United States presents a significant opportunity, as 40% of the population is affected by related issues, yet only 9% currently receive treatment. This gap leads to a substantial economic impact estimated at $420 billion. Hinge Health's innovative approach positions it well to address these challenges and capitalize on the untapped potential within the market.
