Mizuho Securities analyst Ann Hynes has reiterated their bullish stance on HQY stock, giving a Buy rating on March 5.
Ann Hynes has given her Buy rating due to a combination of factors that suggest a promising outlook for Healthequity. One of the primary reasons is the potential legislative changes regarding Health Savings Accounts (HSAs), which could significantly expand the market. There are several bills under consideration that aim to either increase the number of eligible individuals for HSAs or raise the maximum annual contributions, potentially leading to a 15-20% market expansion.
Despite a recent downturn in HQY’s stock price, which has mirrored the overall market decline, the company has shown strong fundamentals with positive earnings announcements. The political landscape, with Republicans in control of the Presidency and Congress, increases the likelihood of pro-HSA legislation passing, which could serve as a catalyst for the stock. Ann Hynes maintains an Outperform rating with a price target of $126, based on a projected price-to-earnings ratio and EBITDA multiples that are conservative compared to the company’s historical averages.
HQY’s price has also changed moderately for the past six months – from $76.580 to $95.780, which is a 25.07% increase.