Bank of America Securities analyst Allen Lutz maintained a Buy rating on Healthequity (HQY – Research Report) yesterday and set a price target of $110.00.
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Allen Lutz has given his Buy rating due to a combination of factors that highlight Healthequity’s strong financial performance and strategic positioning. The company reported impressive first-quarter results, with revenue, EBITDA, and EPS all surpassing market expectations. This performance was driven by lower service costs and strong custodial and interchange revenue, indicating effective cost management and solid revenue streams.
Additionally, Healthequity raised its FY26 guidance for both revenue and EBITDA, reflecting confidence in its future growth prospects. The company is also focusing on managing fraud costs and exploring opportunities related to pending HSA legislation, which could further enhance its financial outlook. These factors, combined with the company’s strategic initiatives and product launches, underpin Lutz’s positive outlook and Buy rating for Healthequity’s stock.
In another report released on May 23, Wells Fargo also maintained a Buy rating on the stock with a $125.00 price target.
HQY’s price has also changed slightly for the past six months – from $101.390 to $103.760, which is a 2.34% increase.