Healthequity (HQY – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Stan Berenshteyn from Wells Fargo maintained a Buy rating on the stock and has a $125.00 price target.
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Stan Berenshteyn has given his Buy rating due to a combination of factors related to recent legislative developments and the potential growth in HealthEquity’s market. The revised Senate tax bill, although less comprehensive than the House version, reintroduces provisions that could expand the Health Savings Account (HSA) market. This includes allowing certain insurance plans to qualify as High Deductible Health Plans (HDHPs) for HSAs, which could potentially increase the total addressable market by over 5 million members.
Furthermore, HealthEquity’s business model is poised to benefit from a compounding effect, as new members are added to an already growing base of assets under management. The potential for incremental earnings, as modeled under various growth scenarios, suggests that even with the Senate bill’s limitations, there is still a positive outlook for the company’s financial performance. These factors combined provide a strong basis for the Buy rating, reflecting confidence in HealthEquity’s ability to capitalize on these legislative changes and market opportunities.
In another report released on June 17, Bank of America Securities also reiterated a Buy rating on the stock with a $125.00 price target.
Based on the recent corporate insider activity of 66 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HQY in relation to earlier this year.