Wells Fargo raises Hinge Health stock price target on strong yield

Wells Fargo has elevated its stock price target for Hinge Health Inc (NYSE:HNGE) to $132, up from $103, while maintaining an Overweight rating on the company's common shares. The brokerage firm praised Hinge Health's third-quarter performance, which surpassed market expectations. The company reported revenue of $235 million and adjusted earnings per share of $77 million, both exceeding consensus estimates by 5% and 23%, respectively.

Additionally, Hinge Health exceeded its guidance of $223 million to $225 million in revenue and $61 million to $63 million in adjusted EBIT. This strong performance has driven the stock price to $115.48, which is near the stock's 52-week high of $118.86 and resulted in a 149% return for the year-to-date. Hinge Health's revenue grew by 52% year-over-year in the third quarter.

The company cited "yield performance" as the primary driver of the earnings beat. Wells Fargo also raised its fiscal 2026 revenue guidance for Hinge Health by approximately twice the amount of the third-quarter earnings beat. With flat average selling prices and an expected gross margin of approximately 85% next year, the firm emphasized that yield remains the key catalyst for Hinge Health's future growth.

According to InvestingPro analysis, the stock appears slightly overvalued relative to its intrinsic value, but the company's robust financial results and expanding product portfolio suggest continued upside potential.