HealthEquity assumed with an Outperform at RBC Capital

RBC Capital assumed coverage of HealthEquity (HQY) with an Outperform rating and price target of $112, up from $105. The company is well positioned in the growing health savings account market, with its leading market share continuing to increase, the analyst tells investors in a research note. The firm says that through both its shift to higher yields on cash balances and leveraging technology to drive down the cost of servicing accounts, HealthEquity should post continued high-single-digit revenue growth and expanding margins.