In a report released yesterday, Stan Berenshteyn from Wells Fargo reiterated a Buy rating on Healthequity, with a price target of $125.00.
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Stan Berenshteyn has given his Buy rating due to a combination of factors including Healthequity’s strong financial performance and strategic initiatives. The company reported its highest adjusted EBITDA in 24 quarters, driven by efficiencies in operating expenses and impressive gross margins across all revenue segments. Additionally, Healthequity has successfully managed fraud risks, significantly reducing associated costs and implementing advanced security measures on its mobile platform.
Another key factor is the company’s progress in securing forward rate contracts, which mitigates exposure to interest rate resets. This strategic move, along with a robust increase in HSA membership and high retention rates, showcases the company’s growth potential. Furthermore, Healthequity’s enhanced guidance for fiscal year 2026, coupled with its strong position in the ACA exchange market, underscores its capability to capitalize on new opportunities, making it an attractive investment prospect.
In another report released yesterday, BTIG also maintained a Buy rating on the stock with a $130.00 price target.
Based on the recent corporate insider activity of 63 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.