Jefferies analyst Glen Santangelo maintained a Buy rating on Healthequity (HQY – Research Report) yesterday and set a price target of $118.00.
Glen Santangelo has given his Buy rating due to a combination of factors that highlight Healthequity’s strong performance and potential for growth. The company reported a revenue beat for the quarter, driven by significant year-over-year growth in its Custodial and Interchange segments. Despite the impact of cyber and fraud-related costs on EBITDA, management expects these costs to decrease in the latter half of the year, which could improve financial performance.
Furthermore, Healthequity continues to demonstrate healthy growth in Health Savings Accounts (HSA), with a notable increase in both total accounts and assets. The company also engaged in a substantial share repurchase during the quarter, indicating confidence in its future prospects. Although the updated guidance for fiscal 2026 shows a slight reduction in EBITDA expectations, the overall revenue outlook remains strong, supporting the Buy recommendation.
In another report released today, BTIG also reiterated a Buy rating on the stock with a $130.00 price target.
HQY’s price has also changed moderately for the past six months – from $77.540 to $101.670, which is a 31.12% increase.