Canaccord raises Waystar stock price target on strong margins

Canaccord increased its price target on Hinge Health Inc (NYSE:HNGE) stock to $134 from $105 while keeping a Buy rating. Hinge Health's shares are currently trading at $115.48, close to their 52-week high of $118.86, following a 154% surge over the past six months. Despite this substantial increase, the stock may be overvalued compared to its intrinsic value.

The digital health firm reported a third-quarter revenue of $235 million, a 52% year-over-year growth, slightly above Canaccord's $224 million estimate. Management credited the revenue boost to better-than-expected billings driven by increased yield rather than acquisitions or price hikes. Hinge Health's free cash flow of $112.7 million exceeded estimates and accounted for a 48% margin.

The company raised its fiscal 2026 free cash flow expectation to 4.6% from 4.45% and expanded its revenue range to $879 million to $881 million from $856 million to $860 million. Additionally, non-GAAP operating income was raised to $266 million to $268 million from $236 million to $244 million. Hinge Health anticipates strong commercial momentum heading into 2027, and management's timing guidance for its GI program is seen as favorable for maintaining near-term estimates focused on the core MSK segment.

Investors can explore detailed Pro Research Reports and 16 InvestingPro Tips for a comprehensive analysis of HNGE's growth prospects. Hinge Health also reported impressive Q3 financials, exceeding analyst expectations with earnings of $0.66 per share, up from the projected $0.60. Revenue climbed 52% year-over-year to $235 million, signaling robust growth in its core musculoskeletal business.

Furthermore, the company raised its full-year revenue and operating income guidance, reflecting confidence in sustained demand and new product momentum. Wells Fargo upgraded Hinge Health's price target to $132 from $103, maintaining an Overweight rating, while Needham raised its target to $135 from $115, citing strong quarter performance and a 28% year-over-year increase in client count.

The company has added more net new covered lives in 2026 than in all of 2025, demonstrating its growing influence in enterprise, small-business, and health-plan markets, along with the expanded adoption of its migraine and gastrointestinal programs.