Bank of America Securities analyst Allen Lutz maintained a Buy rating on Healthequity yesterday and set a price target of $125.00.
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Allen Lutz has given his Buy rating due to a combination of factors, including Healthequity’s ability to surpass market expectations on key HSA metrics and its confidence in delivering results near the high end of prior FY26 guidance. He notes that HSA accounts, total accounts, and HSA cash balances all came in above both Bank of America and consensus estimates, while total HSA assets were at least ahead of Street forecasts, underscoring resilient demand and solid execution.
He also highlights that HSA account growth is still outpacing the broader market, suggesting ongoing share gains even if the growth premium has narrowed, and sees room for portfolio acquisitions to further support near‑term expansion. Despite recent share price pressure from lower rate expectations and labor‑market worries, the stock trades around 11x FY27 consensus EBITDA, a level he views as reflecting cautious assumptions on growth and margins, creating an attractive risk‑reward profile ahead of fuller FY27 guidance.
According to TipRanks, Lutz is a 5-star analyst with an average return of 14.2% and a 65.65% success rate. Lutz covers the Healthcare sector, focusing on stocks such as Hims & Hers Health, Healthequity, and Doximity.
In another report released today, Barclays also maintained a Buy rating on the stock with a $110.00 price target.