HealthEquity upgraded to Strong Buy from Outperform at Raymond James

Raymond James upgraded HealthEquity (HQY) to Strong Buy from Outperform with a price target of $115, down from $120. The firm upgrade the shares despite reducing estimates for increased costs related to fraud. All financial institutions are dealing with elevated levels of fraud, the analyst tells investors in a research note. Raymond James expects HealthEquity to utilize its share repurchase program to capitalize on the recent weakness. Longer term, it has a favorable outlook on the growing health savings account market, the company’s ability to gain market share, and cash repricing at higher yields, which it believes should lead to margin expansion and double-digit earnings growth over each of the next two years.