Hinge Health initiated with an Overweight at Morgan Stanley

Morgan Stanley analyst Craig Hettenbach initiated coverage of Hinge Health (HNGE) with an Overweight rating and $46 price target Hinge is a category leader in virtual musculoskeletal care with a “highly scalable, differentiated AI-driven platform,” the analyst tells investors in a research note. The firm says that in contrast to many digital health companies that benefitted from a material uptick in spending during Covid only to see growth slow materially to single digits, Hinge saw an acceleration in year-over-year growth to 44% and 50% in the last two quarters, respectively. Morgan Stanley sees a “strong case for a higher multiple as margins expand.”