HealthEquity price target lowered to $109 from $117 at RBC Capital

RBC Capital analyst Daniel Perlin lowered the firm’s price target on HealthEquity (HQY) to $109 from $117 and keeps an Outperform rating on the shares ahead of its Q2 results. The stock’s recent decline is attributable to lower 5-year Treasury rates and increased investor expectations that the Fed will cut rates, but the biggest question going into to the quarter is the extent to which the management has pulled forward FY26 and FY27 maturities on HSA cash and the pricing of those contracts, resulting in lower sensitivity to fluctuating interest rates, the analyst tells investors in a research note.