Bank of America Securities analyst Allen Lutz has maintained their bullish stance on HQY stock, giving a Buy rating on August 29.
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Allen Lutz’s rating is based on Healthequity’s strong financial performance in the second quarter, where both revenue and EBITDA surpassed expectations. The company reported a significant increase in its Health Savings Accounts, reversing the previous quarter’s decline. This growth, along with better-than-anticipated service costs, contributed to a favorable outlook.
Additionally, Healthequity raised its guidance for revenue, EBITDA, and EPS for FY26, indicating confidence in its future performance. The company’s strategic initiatives, such as interest rate hedging and fraud cost management, further support the positive rating. These factors combined suggest a promising trajectory for Healthequity, justifying the Buy rating from Allen Lutz.
Lutz covers the Healthcare sector, focusing on stocks such as Teladoc, Doximity, and GoodRx Holdings. According to TipRanks, Lutz has an average return of 7.2% and a 61.19% success rate on recommended stocks.
In another report released on August 29, Barrington also reiterated a Buy rating on the stock with a $125.00 price target.