Wells Fargo analyst Stan Berenshteyn maintained a Buy rating on Healthequity (HQY – Research Report) today and set a price target of $125.00.
Stan Berenshteyn has given his Buy rating due to a combination of factors including the anticipated stability and potential growth in Healthequity’s custodial revenue. The company’s assets under management (AUM) are expected to benefit from the current interest rate environment, particularly with the 5-year Treasury yields around 4%. This rate environment is likely to provide a favorable backdrop for the company as significant portions of their AUM are set to reset at higher rates in the coming years.
Furthermore, Berenshteyn’s analysis suggests that the company’s EBITDA exposure to these rates presents a balanced risk, with potential downsides in FY27 being offset by upsides in FY28. The assumptions of steady overnight rates and organic AUM growth further support the positive outlook. Overall, the combination of stable revenue projections and favorable rate resets underpin the Buy recommendation for Healthequity’s stock.
According to TipRanks, Berenshteyn is an analyst with an average return of -7.4% and a 47.67% success rate. Berenshteyn covers the Healthcare sector, focusing on stocks such as Omnicell, Veeva Systems, and Healthequity.
In another report released on April 16, KeyBanc also maintained a Buy rating on the stock with a $100.00 price target.