HealthEquity price target lowered to $85 from $100 at BMO Capital

BMO Capital lowered the firm’s price target on HealthEquity (HQY) to $85 from $100 and keeps a Market Perform rating on the shares. The firm believes that the company will continue to leverage its scale to expand its leading position in the growing HSA end market and drive service costs lower via technology while benefiting near term from additional custodial revenue growth as cash assets are re-priced at higher interest rates, though its price target cut reflects the recent valuation compression across the peer group, the analyst tells investors in a research note.