RBC Capital raised the firm’s price target on HealthEquity (HQY) to $110 from $109 and keeps an Outperform rating on the shares. The company delivered a strong beat and raise, largely due to improvements in gross margin, and the firm sees tailwinds for the company as it both de-risks its HSA cash portfolio with additional forward contracts in FY26, setting up yield improvement in FY27 and beyond, the analyst tells investors in a research note. RBC further cites HealthEquity reducing interest rate sensitivity and leveraging AI to further strengthen its Service gross margins.
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