In a report released today, Alexander Paris from Barrington reiterated a Buy rating on Healthequity (HQY – Research Report), with a price target of $112.00.
Alexander Paris has given his Buy rating due to a combination of factors that reflect both the current challenges and future potential of Healthequity. Despite the recent earnings miss attributed to unexpected cybersecurity costs, the company’s revenue growth remains strong, with a notable increase of 18.8% in the fourth quarter. This growth indicates a robust sales momentum that is expected to continue into the next fiscal year, supported by favorable interest rate trends.
Moreover, while the FY/26 guidance for adjusted EBITDA and non-GAAP EPS is slightly below consensus expectations, the company’s valuation metrics suggest an attractive investment opportunity. Healthequity’s shares are trading at a discount compared to its high-growth SaaS peers and its historical averages, offering approximately 38% upside potential to the $112 price target. Alexander Paris anticipates improved margins and earnings growth in the latter half of FY/26, reinforcing his confidence in the company’s long-term prospects.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $110.00 price target.