RBC Capital has lowered its price target for Hinge Health Inc. (HNGE) to $50.00 from $60.00, while keeping an Outperform rating on the stock. The analyst action follows what RBC described as "another solid quarter of revenue outperformance and margin expansion," with the firm's note saying that all reported metrics topped consensus expectations.
The brokerage highlighted that Hinge Health shares climbed by about 12% in after-hours trading after the company released quarterly results and issued guidance that came in better than analysts had expected. RBC characterized the company as having "a long runway ahead" as it scales into a growing total addressable market, broadens its partner network, and sustains durable margin expansion.
On valuation, RBC said Hinge Health currently trades at approximately 3 times estimated calendar year 2027 revenue. The new $50 price objective, the firm added, is predicated on roughly 5 times that same 2027 revenue estimate.
Additional analyst activity has followed Hinge Health's quarterly disclosure. The company reported a fourth-quarter 2025 earnings per share of $0.49, beating the $0.14 forecast by 250 percent. Revenue for the quarter reached $171 million, representing a 46 percent year-over-year increase.
Needham reiterated its Buy rating and maintained a $59.00 price target, citing the company's strong finish to fiscal year 2025 and the robust initial guidance provided for fiscal year 2026. In Needham's view, Hinge Health remains a leader in the AI-driven digital health space.
Similarly, Citizens kept its Market Outperform rating and a $65.00 price target, pointing to the firm's impressive results and operational efficiency. Collectively, these analyst moves reflect continued confidence among some investors and sell-side analysts in Hinge Health's position within the digital health sector.
While RBC trimmed its valuation multiple implied by the price target, the note emphasized fundamental progress across revenue growth, margin expansion, and partner network development. The combination of a positive operational update and differing price target views from analysts underscores an active debate around the appropriate multiple investors should assign as Hinge Health scales.
Key takeaways
- RBC lowered its Hinge Health price target to $50 from $60 but maintained an Outperform rating after a quarter of revenue outperformance and margin expansion.
- Hinge Health reported Q4 2025 EPS of $0.49 versus a $0.14 forecast and revenue of $171 million, a 46 percent year-over-year increase.
- Needham and Citizens remain constructive with higher price targets of $59 and $65 respectively, highlighting the company's leadership in AI-driven digital health and operational efficiency.
Risks and uncertainties
- Valuation sensitivity - RBC's change in price target reflects differing views on the multiple to apply to estimated 2027 revenue, which affects equity valuations for Hinge Health and could influence investor returns in the health technology sector.
- Execution and scaling - Continued margin expansion and partner network growth are central to the positive outlook; any slowdown in those operational areas could alter analyst assessments and market reaction, impacting digital health and healthcare services investors.