In a report released today, Alexander Paris from Barrington reiterated a Buy rating on Healthequity, with a price target of $125.00.
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Alexander Paris’s rating is based on several positive indicators for HealthEquity. The company is expected to report strong financial results for the fiscal second quarter, with anticipated revenue and earnings growth compared to the previous year. The management has also raised its guidance for the fiscal year 2026, indicating confidence in continued performance improvement.
Additionally, HealthEquity’s strategic shift to its Enhanced Rates offering is expected to provide higher yields and reduce volatility in its Health Savings Account (HSA) cash yields. Despite a recent decline in stock price, the shares are considered undervalued compared to the company’s high-growth SaaS peers and its historical valuation averages. With a robust HSA business and improved financial metrics, the stock is projected to have significant upside potential, leading to the reiterated Buy rating and a 12-month price target of $125.
In another report released on August 27, RBC Capital also maintained a Buy rating on the stock with a $109.00 price target.