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 has given his Buy rating due to a combination of factors including HealthEquity’s strong financial performance in the third quarter, which exceeded expectations. The company reported a notable increase in total revenue, driven by significant custodial revenue growth, and an impressive rise in adjusted EBITDA and non-GAAP net income. These results surpassed both the firm’s estimates and the consensus figures, indicating robust operational efficiency and financial health.
Moreover, HealthEquity’s management has raised its full-year guidance, reflecting confidence in continued revenue and margin improvements, supported by strategic investments in technology and security. The company’s shares are trading at attractive multiples compared to its high-growth SaaS peers and its historical averages, suggesting potential for further appreciation. With a leading position in the HSA market and a favorable market environment, HealthEquity is well-positioned for future growth, justifying the reiterated OUTPERFORM rating and a 12-month price target of $125, representing a significant upside potential.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $125.00 price target.
Based on the recent corporate insider activity of 62 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.