Strong Financial Performance and Strategic Growth Opportunities Drive Buy Rating for Healthequity

Wells Fargo analyst Stan Berenshteyn maintained a Buy rating on Healthequity (HQY – Research Report) today and set a price target of $125.00.

Stan Berenshteyn has given his Buy rating due to a combination of factors that highlight Healthequity’s strong financial performance and strategic initiatives. The company reported a significant beat in its first-quarter earnings, with revenue and adjusted EBITDA surpassing expectations. This was largely driven by the strength in custodial and interchange services, as well as a reduction in fraud-related costs, which management expects to continue decreasing.
Additionally, the potential for legislative changes to expand the Health Savings Account (HSA) market by approximately 20 million members presents a substantial growth opportunity for Healthequity. The company’s proactive measures, such as locking in forward contracts to mitigate exposure to interest rate resets, further demonstrate its strategic foresight. These factors, combined with an improved guidance for fiscal year 2026 and a solid enterprise pipeline, underpin Berenshteyn’s positive outlook on Healthequity’s stock.

In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $110.00 price target.